Wholesale price inflation hits a 5-month low of 2.17% in May

news
15 June 2017

Wholesale price inflation rate in India hit a five-month low in May 2017 with food items such as vegetables becoming cheaper. The annual rate of inflation based on the wholesale price index (WPI) for May 2017 stood at 2.17 per cent compared to 3.85 per cent for the previous month, provisional estimates released on Wednesday showed.

WPI-based inflation stood at (-) 0.90 per cent during the corresponding month of the previous year.

Build up of inflation rate in the financial year so far was (-) 0.35 per cent compared to a build up rate of 2.51 per cent in the corresponding period of the previous year

Inflation for the `primary articles' group which has a weight of 22.62 per cent in the wholesale price index declined by 1.5 per cent in May 2017.

Among primary articles, the index for the 'food articles' group declined by 1.2 per cent due to lower prices of fish and egg, betel leaves, barley, ragi, wheat, maize, jowar, urad, masur, arhar, gram, rajma, moong, tea, condiments and spices, fruits and vegetables and coffee.

However, the prices of peas/chawali, beef and buffalo meat and poultry chicken moved up.

Inflation rate for the 'non-food articles' group declined by 1.2 per cent due to lower prices of raw rubber, guar seed, cotton seed, castor seed, raw jute, soyabean copra (coconut), sunflower, linseed, groundnut seed, raw cotton, mesta, raw silk and fodder.

However, the prices of floriculture, niger seed and safflower (kardi seed) moved up.

Inflation rate for the 'minerals' group rose 1.9 per cent due to higher prices of garnet, lead concentrate, copper concentrate, iron ore and zinc concentrate. However, the prices of manganese ore and chromite declined.

Inflation rate for the 'crude petroleum and natural gas' group declined by 7.1 per cent due to lower prices of  crude petroleum and natural gas.

Inflation rate for the `fuel and power' group, which has a weight of 13.15 per cent in the wholesale price index, declined by 2.1 per cent due to lower prices of LPG, bitumen, naphtha, ATF, petrol, HSD and electricity.

However, the prices of petroleum coke, lignite and kerosene moved up.

Inflation rate for the `manufactured products' group, which has the highest weight of 64.23 per cent in the wholesale price index, rose 0.4 per cent in May 2017.

Among manufactured products, inflation rate for the 'manufacture of food products' group declined by 0.1 per cent due to lower prices of manufacture of macaroni, noodles, couscous and similar farinaceous products, honey and copra oil, rice bran oil, spices (including mixed spices), cotton seed oil, buffalo meat (fresh/frozen), wheat flour (atta) and maida, sooji (rawa), rapeseed oil, processed tea, groundnut oil, vanaspati and sunflower oil, soyabean oil, wheat bran, salt, mustard oil and palm oil.

However, the prices of other meats, preserved/processed and manufacture of cocoa, chocolate and sugar confectionery, coffee powder with chicory, instant coffee, ghee, condensed milk and powder milk, gur, processing and preserving of fish, crustaceans and molluscs and products thereof, castor oil, rice, non-basmati, rice products, butter, processing and preserving of fruit and vegetables, chicken/duck, dressed-fresh/frozen, manufacture of starches and starch products and sugar moved up.

Inflation rate for the 'manufacture of beverages' group rose 0.3 per cent due to higher prices of beer and wine.

Inflation rate for the 'manufacture of tobacco products' group declined by 1.9 per cent due to lower prices of cigarettes and other tobacco products.

However, the price of biri moved up.

Inflation rate for the 'manufacture of textiles' group rose 0.3 per cent due to higher prices of cotton yarn and manufacture of other textiles, texturised and twisted yarn and manufacture of made-up textile articles, except apparel.

However, the prices of synthetic yarn and manufacture of knitted and crocheted fabrics and manufacture of cordage, rope, twine and netting declined.

Inflation rate for the 'manufacture of wearing apparel' group declined 0.4 per cent due to lower prices of leather garments, including Jackets and shirts/half shirts of cotton and/or man-made fibre and babies garments (knitted).

However, the prices of men/boys suits, coats and jackets and trouser/pants made of cotton and/or man-made fibre moved up.

Inflation rate for the 'manufacture of leather and related products' group declined 0.6 per cent due to lower prices of chrome tanned leather, belt and other articles of leather and harness, saddles and other related items.

However, the prices of gloves of leather, canvas shoes and leather shoe, plastic/PVC chappals, travel goods, handbags, office bags etc and waterproof footwear moved up.

Inflation rate for the 'manufacture of wood and products of wood and cork' group declined 0.5 per cent due to lower prices of lamination wooden sheets/veneer sheets, timber/wooden plank, sawn/resawn and particle boards. However, the price of wooden block - compressed or not and wood cutting, processed/sized moved up.

Inflation rate for the 'manufacture of paper and paper products' group rose 0.7 per cent due to higher prices of paper bag, including craft paper bag, laminated plastic sheet, card board box, poster paper, kraft paper and duplex paper, paper carton/box, hard board, base paper, map litho paper, pulp board and corrugated sheet box.

However, the price of card board and press board and paper for printing and writing declined.

Inflation rate for the 'printing and reproduction of recorded media' group declined by 0.7 per cent due to lower prices of journal/periodical and sticker plastic.

However, the prices of printed labels/posters/calendars moved up.

Inflation rate for the 'manufacture of chemicals and chemical products' rose 0.3 per cent due to higher prices of camphor, mosquito coil, dye stuff/dyes (including dye intermediates and pigments/colours), hydrogen peroxide, menthol, carbon black, detergent cake, washing soap cake/bar/powder, varnish (all types), caustic soda (sodium hydroxide), organic surface active agent, acrylic fibre, ammonium sulphate,  liquid air and other gaseous products, acetic acid and its derivatives, ammonia liquid, insecticide and pesticide, agro chemical formulation, nitrogenous fertilizer, others, powder coating material, foundry chemical, additive, mixed fertilizer, superphospate / phosphatic fertilizer, others, alkyl benzene, ammonium nitrate and epoxy, liquid.

However, the prices of ammonia gas, amine, polyester chips or polyethylene terepthalate (PET) chips, plasticizer, nitric acid, mono ethyl glycol, perfume/scent and oleoresin, gelatin, sodium silicate, phosphoric acid, phthalic anhydride, organic chemicals, organic solvent, catalysts, XLPE compound, polystyrene, expandable, tooth paste/tooth powder, polyester film (metalised), printing ink, viscose staple fibre, aromatic chemicals and sulphuric acid declined.

Inflation rate for the 'manufacture of pharmaceuticals, medicinal chemicals and botanical products' group declined 0.2 per cent due to lower prices of antidiabetic drug (excluding insulin (tolbutam), antibiotics and preparations thereof) and API and formulations of vitamins.

However, the prices of simvastatin, sulpha drugs, anti-allergic drugs and plastic capsules, antipyretic, analgesic, anti-inflammatory formulations and anti-malarial drugs, cotton wool (medicinal) and ayurvedic medicaments moved up.

Inflation rate for the 'manufacture of rubber and plastics products' group declined 0.1 per cent due to lower prices of condoms, rubberised dipped fabric, polyester film (non-metalised), PVC fittings and other accessories, processed rubber, plastic tube (flexible/non-flexible), plastic components, rubber crumb, polypropylene film and plastic tank and plastic bag, acrylic/plastic sheet and plastic bottle.

However, the price of rubber components and parts, conveyer belt (fibre based), polythene film, rubber tread, rubber cloth/sheet, medium and heavy commercial vehicle tyres, thermocol, cycle/cycle rickshaw tyre, V-belt, motor car tube, tractor tyre, plastic box/container, plastic furniture and 2/3 wheeler tyre moved up.

Inflation rate for the 'manufacture of other non-metallic mineral products' group rose 1.9 per cent due to higher prices of cement (superfine), ordinary portland cement, pozzolana cement and slag cement, ceramic tiles (vitrified tiles), non ceramic tiles, clinker and ordinary sheet glass and railway sleeper, cement blocks (concrete), glass bottle, asbestos corrugated sheet, marble slab, stone, chip and lime and calcium carbonate.

However, the prices of fibre glass (including sheet and graphite rod), opthalmic lens and porcelain sanitary ware declined.

Inflation rate for the 'manufacture of basic metals' group rose 2.0 per cent due to higher prices of angles, channels, sections, steel (coated/not), pig iron, sponge iron/direct reduced iron (DRI) and GP/GC sheet, MS pencil ingots and hot rolled (HR) coils and sheets, including narrow strip, MS wire rods, alloy steel wire rods, galvanised iron pipes, aluminium castings, cold rolled (CR) coils and sheets, including narrow strip, mild steel (MS) blooms, silicomanganese, stainless steel coils, strips and sheets, ferrosilicon, lead ingots, bars, blocks and plates, stainless steel bars and rods (including flats), other ferro alloys, alumnium foil, aluminium shapes - bars/rods/flats, aluminium ingot, cast iron, castings, MS bright bars, aluminium powder and aluminium metal.

However, the price of MS castings, alloy steel castings and stainless steel tubes, copper shapes - bars/rods/plates/strips and ferrochrome and zinc metal/zinc blocks declined.

Inflation rate for the 'manufacture of fabricated metal products, except machinery and equipment' group rose 1.1 per cent due to higher prices of copper bolts, screws, nuts, electrical stamping - laminated or otherwise - iron/steel hinges, steel structures, boilers, bolts, screws, nuts and nails of iron and steel, stainless steel razor and metal cutting tools and accessories, steel drums and barrels, pressure cooker, steel door, steel pipes, tubes and poles and aluminium utensils.

However, the prices of jigs and fixture, hand tools and bracket, lock/padlock and forged steel rings declined.

Inflation rate for the 'manufacture of computer, electronic and optical products' group rose 0.6 per cent due to higher prices of colour TV and electro-diagnostic apparatus used in medical, surgical, dental or veterinary sciences, sunglasses, air conditioner and UPS in solid state drives. However, the prices of electronic printed circuit board (PCB)/micro circuit declined.

Inflation rate for the 'manufacture of electrical equipment' group declined 0.2 per cent due to lower prices of solenoid valve and electric switch, microwave oven and light fitting accessories, electrical resistors (except heating resistors), washing machines/laundry machines, copper wire, transformer, domestic gas stove, electric switch gear control/starter, electrical relay/conductor and fan.

However, the prices of electric heaters, connector/plug/socket/holder-electric, ACSR conductors, aluminium wire, dry cells such as torch light batteries, aluminium/alloy conductor, electric wires and cables, insulator, rubber insulated cables, PVC insulated cable, insulating and flexible wire and refrigerators moved up.

Inflation rate for the 'manufacture of machinery and equipment' group declined 0.1 per cent due to lower prices of excavator, roller mill (raymond), pharmaceutical machinery, grinding or polishing machine, drilling machine, conveyors (non-roller type), solar power system (solar panel and attachable equipment), injection pump and hydraulic equipment and  gasket kit, agriculture implements, industrial valve, air filters, chemical equipment and system, pressure vessel and tank for fermentation and other food processing and mining, quarrying and metallurgical machinery/parts.

However, the prices of air or vacuum pump, rice mill machinery, moulding machine and mixing machine, harvesters and open end spinning machinery and air gas compressor, including compressor for refrigerator, deep freezers, machinery for plastic products (extruded), filtration equipment and centrifugal pumps moved up.

Inflation rate for the 'manufacture of motor vehicles, trailers and semi-trailers' group rose 0.6 per cent due to higher prices of chassis of different vehicle types and minibus/bus, engine, brake pad/brake liner/brake block/brake rubber, others, shafts of all kinds, axles of motor vehicles and head lamp.

However, the price of crankshaft and cylinder liners and filter element declined.

Inflation rate for the 'manufacture of other transport equipment' group rose 0.8 per cent due to higher prices of motor cycles. However, the price of wagons and diesel/electric locomotive declined.

Inflation for the 'manufacture of furniture' group declined by 2.6 per cent due to lower prices of foam and rubber mattress, wooden furniture and plastic fixtures. However, the prices of steel shutter gate and hospital furniture moved up.

WPI food inflation rate for the food articles group consisting 'food articles' from the primary articles group and 'food product' from the manufactured products group, which has a weight of 24.38 per cent in the wholesale price index, decreased to 0.15 per cent in May 2017 from 2.90 per cent in April.

The final inflation rate for March 2017 based on the final wholesale price index for 'all commodities' (Base: 2004-05=100) stood at 5.99 per cent compared to 5.70 per cent (provisional), respectively, as reported on 14 April 2017.





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