Wholesale price inflation hits a 4-year high of 5.77% in June
16 July 2018
India’s wholesale price inflation based on the wholesale price index (WPI) rose to a four-year high of 5.77 per cent in June against 4.43 per cent in May and 0.90 per cent during the corresponding month of the previous year.
Build-up of inflation rate in the financial year so far stood at 2.49 per cent compared to a build-up rate of (-) 0.44 per cent in the corresponding period of the previous year.
The spike in June wholesale inflation comes on the back of an increase in consumer price inflation that hit a five-month high of 5 per cent against 4.87 per cent in May.
Inflation rate for the primary articles group, which has a weight of 22.62 per cent in the wholesale price index rose 2.0 per cent in June 2018.
Within the primary goods group, inflation rate for the `food articles’ group rose 1.1 per cent due to higher prices of fruits and vegetables, maize, jowar, barley, bajra, wheat, coffee, condiments and spices, milk, egg, fish beef and buffalo meat, and chicken. However, the price of betel leaves, urad, arhar and gram, ragi, masur and moong declined
Inflation rate for the ‘non-food articles’ group rose 2.9 per cent due to higher prices of raw cotton, industrial wood, safflower (kardi seed), sunflower, groundnut seed, cotton seed, linseed, mesta, hides, raw rubber, raw wool, castor seed, gingelly seed and coir fibre. However, the price of niger seed, guar seed and raw silk, copra (coconut) and soyabean and floriculture declined.
Inflation rate for the ‘minerals’ group rose 1.4 per cent due to higher prices of manganese ore, iron ore, zinc concentrate, limestone and lead concentrate. However, the prices of garnet, sillimanite and chromite declined.
Inflation rate for the ‘crude petroleum and natural gas’ group rose 8.1 per cent due to higher 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 WPI, rose 3.0 per cent in June 2018.
Inflation rate for the ‘mineral oils’ group rose 3.5 per cent due to higher prices of furnace oil, ATF, LPG and naphtha, bitumen, HSD, petrol and kerosene and petroleum coke.
Inflation rate for the ‘electricity’ group rose 4.0 per cent due to higher prices of electricity.
Inflation rate for the `manufactured products’ group, which has a weight of 64.23 per cent in WPI, rose 0.4 per cent in June 2018
Within the manufactured products group, inflation rate for the `food products’ group rose by 1.0 per cent due to higher prices of sugar, rice products, coffee powder, macaroni, noodles, couscous and similar farinaceous products, gur, processed tea, instant coffee and spices (including mixed spices) (2% each) and mustard oil, bagasse, molasses, sunflower oil, palm oil, rapeseed oil and castor oil, salt, health supplements, animal feeds, rice bran oil, ready-to-eat food, sooji (rawa), butter, condensed milk, maida, chicken buffalo meat and other meats. However, the prices of wheat bran and soyabean oil, processed fish, crustaceans, molluscs and products thereof, processing and preserving of fruits and vegetables, powder milk, copra oil, ice cream, cocoa, chocolate and sugar confectionery, starches and starch products and groundnut oil declined.
Inflation rate for the ‘manufacture of beverages’ group rose 0.3 per cent due to higher prices of country liquor, beer and spirits. However, the prices of bottled mineral water and rectified spirit declined.
Inflation rate for the ‘tobacco products’ group rose 0.4 per cent due to higher prices of other tobacco products.
Inflation rate for the ‘manufacture of textiles’ group rose 0.3 per cent in June due to higher prices of manufacture of other textiles and synthetic yarn, cotton yarn, viscose yarn, manufacture of made-up textile articles, except apparel and manufacture of knitted and crocheted fabrics. However, the price of woollen yarn declined.
Inflation rate for the ‘wearing apparel’ group declined by 1.3 per cent due to lower price of wearing apparel (woven), except fur apparel.
Inflation rate for the ‘leather and related products’ group rose 0.2 per cent due to higher prices of harness, saddles and other related items and gloves of leather, athletic/sport shoes, chrome tanned leather and travel goods, handbags, office bags, etc. However, the prices of belt and other articles of leather and waterproof footwear and plastic/PVC chappals declined.
Inflation rate for the ‘wood and wood products and cork’ group declined by 0.2 per cent due to lower prices of lamination wooden sheets/veneer sheets and wood cutting. However, the prices of plywood block boards and wooden panel moved up.
Inflation rate for the ‘manufacture of paper and paper products’ group declined by 0.2 per cent due to lower prices of paper bag, including craft paper bag, tissue paper, base paper and paper carton/box, corrugated sheet box, corrugated paper board and duplex paper. However, the prices of newsprint, pulp board, maplitho paper and paper for printing and writing moved up.
Inflation rate for the ‘printing and reproduction of recorded media’ group declined by 0.1 per cent in June due to lower prices of printed form and schedule, sticker plastic and journal/periodical. However, the price of hologram (3D) and newspaper moved up.
Inflation rate for the ‘chemicals and chemical products’ group rose 0.6 per cent due to higher prices of camphor, sulphuric acid, hydrogen peroxide, nitric acid and acetic acid and its derivatives, phosphoric acid, varnish (all types), other inorganic chemicals, organic solvent, amine and agro chemical formulation and ethyl acetate, dye stuff/dyes, including dye intermediates and pigments/colours, ethylene oxide, other petrochemical intermediates, safety matches, adhesive tape (non-medicinal), sodium silicate, alkyl benzene, polyester fibre fabric, additives, carbon black, insecticide & pesticide, polystyrene, expandable, superphospate/ phosphatic fertilser, others and rubber chemicals and detergent cake, washing soap cake/bar/powder, soda ash/washing soda, ammonium nitrate, catalysts, polyethylene, tooth paste/tooth powder, oleoresin, alcohols, aromatic chemicals, di ammonium phosphate, nitrogenous fertilizer, others, poly vinyl chloride (PVC), XLPE compound, ammonium phosphate and ammonium sulphate. However, the prices of menthol, mono ethyl glycol, caustic soda (sodium hydroxide) and phthalic anhydride, liquid air and other gaseous products, polyester film(metalized), explosive and printing ink and aniline (including PNA, ONA and OCPNA), urea, poly propylene (PP), powder coating material and ammonia liquid declined.
Inflation rate for the ‘pharmaceuticals, medicinal chemicals and botanical products’ group rose 0.2 per cent due to higher price of antipyretic, analgesic, anti-inflammatory formulations and anti cancer drugs, vials/ampoule, glass, empty or filled and medical accessories and digestive enzymes, antacids and anti allergic drugs. However, the prices of anti-retroviral drugs for HIV treatment, antioxidants, plastic capsules and antibiotics and preparations thereof, API & formulations of vitamins, simvastatin and antiseptics ad disinfectants declined.
Inflatonratr for the ;rubber and plastics products’ group rose by 0.5 per cent due to higher price of plastic furniture, rubberized dipped fabric and processed rubber (4% each), rubber moulded goods (3%), polypropylene film, polyester film (non-metalized), V-belt and plastic bottle, motor car tube, rubber crumb, PVC fittings and other accessories, plastic bag, plastic components, motor car tyre, cycle/cycle rickshaw tyre, acrylic/plastic sheet and plastic box/container. However, the prices of rubber cloth/sheet, conveyer belt (fibre based), plastic tube (flexible/non-flexible) and rubber tubes - not tyre tubes and plastic buttons, elastic webbing, rubber components and parts, solid rubber tyres/wheels, plastic tank and polythene film declined.
Inflation rate for the ‘non-metallic mineral products’ group declined by 0.4 per cent due to lower prices of porcelain sanitary ware, ordinary portland cement and clinker, cement superfine, glass bottle, marble slab and pozzolana cement. However, the prices of ordinary sheet glass, asbestos corrugated sheet, ceramic tiles (vitrified tiles), white cement and cement blocks (concrete) and plain bricks, slag cement, railway sleeper, stone, chip, granite, fibre glass (incl. sheet and toughened glass) moved up.
OInflation rate for the `base metals’ group rose 0.7 per cent due to higher prices of MS pencil ingots and alloy steel castings, copper metal/copper rings, stainless steel tubes, MS bright bars, sponge iron/direct reduced iron (DRI), steel cables, stainless steel coils, strips and sheets, MS wire rods, brass metal/sheet/coils and steel forgings, aluminium ingot, cold rolled (CR) coils and sheets (including narrow strip, angles, channels, sections, steel) stainless steel bars and rods (including flats, MS castings, aluminium castings, copper shapes-bars/rods/plates/strips, mild steel (MS) blooms, galvanized iron pipes, cast iron, castings and aluminium metal. However, the prices of rails, silicomanganese, other ferro alloys, alumnium foil, ferromanganese, pig iron and GP/GC sheet declined.
Inflation rate for the ‘fabricated metal products (except machinery and equipment) group rose 1.2 per cent due to higher prices of sanitary fittings of iron and steel, electrical stamping-laminated or otherwise, steel doors, cylinders and pressure cooker, forged steel rings and bolts, screws, nuts and nails of iron and steel, steel pipes, tubes and poles, stainless steel utensils, copper bolts, screws, nuts and jigs and fixture. However, the prices of hose pipes in set or otherwise and stainless steel tank, steel structures, aluminium utensils and steel drums and barrels declined.
Inflation rate for the ‘computer, electronic and optical products’ group declined 0.3 per cent due to lower prices of electro-diagnostic apparatus used in medical, surgical, dental or veterinary sciences, capacitors and meter (non-electrical) and telephone sets, including mobile handsets. However, the price of colour TV sets moved up.
Inflation rate for the ‘electrical equipment’ group rose 0.3 per cent due to higher prices of solenoid valve, fibre optic cables, light fitting accessories, rubber insulated cables, ACSR conductors, generators and alternators, aluminium wire, electric accumulators, electrical relay/conductor, transformer, electric and other meters and insulating and flexible wire. However, the prices of jelly filled cables, rotor/ magneto rotor assembly and electric switch and electric mixers/ grinders/ food processors, fan and electric switch gear control/starter declined.
Inflation rate for the ‘machinery and equipment’ group rose 0.4 per cent due to higher prices of pressure vessels and tanks for fermentation and other food processing, cranes, filtration equipment, road roller, hydraulic equipment and pneumatic tools and pharmaceutical machinery, lathes, industrial valve, oil pump, material handling, lifting and hoisting equipment, gasket kit, mining, quarrying and metallurgical machinery/parts, air gas compressor 9including compressor for refrigerator, threshers and excavator). However, the prices of air or vacuum pump and moulding machine, conveyors-non-roller type injection pump, packing machine, solar power system (solar panel & attachable equipment), hydraulic pump, roller and ball bearings, printing machinery, deep freezers and manufacture of bearings, gears, gearing and driving elements declined.
Inflation rate for the ‘motor vehicles, trailers and semi-trailers’ group rose 0.2 per cent due to higher prices of crankshaft, passenger vehicles, shafts of all kinds, release valve, chain and chassis of different vehicle types. However, the prices of brake pad/brake liner/brake block/brake rubber, others and cylinder liners and radiators and coolers declined.
Inflation rate for the ‘furniture’ group rose 1.9 per cent due to higher prices of foam and rubber mattress, steel shutter gate and plastic fixtures. However, the prices of wooden furniture and hospital furniture declined.
The rate of inflation based on WPI Food Index (weight of 24.38 per cent), consisting of ‘food articles’ from primary articles group and ‘food products’ from the manufactured products group increased to 1.56 per cent in June 2018 from 1.12 per cent in May.
The final inflation rate for April based on the final wholesale price index for ‘all commodities’ (Base: 2011-12=100) stood 3.62 per cent compared to 3.18 per cent (provisional) reported in May.