WPI inflation eases to 5.09% in July on cheaper food articles

The WPI-based inflation was recorded at 5.77 per cent in June while it was 1.88 per cent in July 2017.

Build-up of inflation rate in the financial year so far was 2.92 per cent compared to a build-up rate of 0.62 per cent in the corresponding period of the previous year.

Wholesale inflation in food articles category was (-) 2.16 per cent in July against 1.80 per cent in the previous month, according to the data released by the ministry of commerce and industry.

Among others in the basket, vegetable prices fell 14.07 per cent during the month compared to a growth of 8.12 per cent in June.

Likewise, there was an 8.81 per cent fall in the wholesale prices of fruits in July as against a rise of 3.87 per cent in the preceding month. In pulses category, inflation stood at (-) 17.03 per cent against (-) 20.23 per cent.

Retail inflation eased to a nine-month low of 4.17 per cent in July, from 4.9 per cent in June, on account of cheaper food articles.

Published on August 14, 2018

TOPICS prices, inflation and deflation

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Index Numbers of Wholesale Price in India (Base: 2011-12=100)

Review for the month of July, 2018

Posted On: 14 AUG 2018 12:00PM by PIB Delhi

The official Wholesale Price Index for ‘All Commodities’ (Base: 2011-12=100) for the month of July, 2018 rose by 0.4 per cent to 119.7 (provisional) from 119.2 (provisional) for the previous month.

The annual rate of inflation, based on monthly WPI, stood at 5.09% (provisional) for the month of July, 2018 (over July, 2017) as compared to 5.77% (provisional) for the previous month and 1.88% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 2.92% compared to a build up rate of 0.62% in the corresponding period of the previous year.

Inflation rate for the `primary articles’ group, which has a weight of 22.62 per cent in the wholesale price index rose 1.3 per cent in July 2018.

Within the `primary articles’ group the ‘food articles’ group rose 2.1 per cent due to higher prices of peas/chawali, fruits and vegetables, gram, bajra, moong, egg,  condiments and spices, fish, poultry chicken, wheat, tea, urad, paddy and milk. However, the prices of betel leaves, arhar, pork and barley declined.

Inflation rate for the ‘non-food articles’ group rose 0.8 per cent due to higher prices of flours, guar seed, castor seed, raw cotton, sunflower, rape and mustard seed, raw jute, groundnut seed and raw rubber, coir fibre, mesta, linseed, gingelly seed and cotton seed. However, the prices of raw silk, niger seed, fodder, safflower (kardi seed), soyabean and copra (coconut) declined.

Inflation rate for the ‘minerals’ group declined 7.6 per cent due to lower prices of copper concentrate, manganese ore, chromite, iron ore, bauxite, limestone and zinc concentrate. However, the prices of sillimanite and garnet moved up.

Inflation rate for the ‘crude petroleum and natural gas’ group declined by 0.8 per cent due to lower price of crude petroleum. However, the price of natural gas moved up.

Inflation rate for the `fuel and power’ group, which has a weight of 13.15 per cent in the WPI, rose 0.3 per cent in July 2018.

Within the `fuel and power’ group, inflation for the ‘mineral oils’ group rose 0.6 per cent due to higher prices of bitumen, LPG, petroleum coke, kerosene and furnace oil. However, the prices of ATF, naphtha, petrol and HSD declined.

Inflation rate for the `manufactured products’ group, which has a weight of 64.23 per cent in the WPI, rose 0.1 per cent in July 2018.

Within the 1manufactured products’ group, inflation rate for th3e `food products’ group rose 0.4 per cent in July due to higher prices of gram powder (besan), maida, castor oil, sugar, mustard oil, sooji (rawa), gur, wheat flour (atta), processed ready to eat food and manufacture of cocoa, chocolate and sugar confectionery, cotton seed oil, basmati rice, groundnut oil, macaroni, noodles, couscous and similar farinaceous products, processed tea, prepared animal feeds, bakery products, rice bran oil, vanaspati and health supplements. However, the prices of molasses, coffee powder with chicory, instant coffee and salt, milk powder, rice products, honey, palm oil, ice cream, copra oil, rice (non-basmati), spices (including mixed spices), ghee, chicken/duck (dressed- fresh/frozen), butter, processing and preserving of fruit and vegetables and processing and preserving of fish, crustaceans and molluscs and products thereof declined.

Inflation rate for the ‘beverages’ group declined by 0.3 per cent due to lower prices of aerated drinks/soft drinks (incl soft drink concentrates). However, the prices of bottled mineral water, country liquor, rectified spirit and wine moved up.

Inflation rate for the ‘Tobacco Products’ group declined by 0.7 per cent due to lower prices of other tobacco products. However, the price of cigarette moved up.

Inflation rate for the `Textiles’ group rose 1.0 per cent due to higher prices of manufacture of knitted and crocheted fabrics, cotton yarn, synthetic yarn,  weaving and finishing of textiles, woollen yarn, viscose yarn, cordage, rope, twine and netting.

Inflation rate for the ‘Wearing apparel’ group declined by 0.7 per cent due to lower prices of manufacture of knitted and crocheted apparel.

Inflation rate for the ‘leather and related products’ group rose 0.9 per cent due to higher prices of vegetable tanned leather, belt and other articles of leather and chrome tanned leather, plastic/PVC chappals, leather shoe, canvas shoes, harness, saddles and other related items.

Inflation rate for the ‘Wood and of products of wood and cork’ group declined 0.8 per cent due to lower prices of wooden box/crate, wooden panel, lamination wooden sheets/veneer sheets and wood cutting, processed/sized. However, the price of wooden block-compressed or not and timber/wooden plank, sawn/resawn moved up.

Inflation rate for the ‘paper and paper products’ group rose 0.9 per cent due to higher prices of paper bag, including craft paper bag, paper carton/box, corrugated paper board, duplex paper, base paper and laminated paper, corrugated sheet box, bristle paper board, pulp board and newsprint.

Inflation rate for the ‘printing and reproduction of recorded media’ group declined 0.8 per cent due to lower prices of printed books and printed labels/posters/calendars. However, the prices of hologram , journal/periodical, sticker plastic and printed form and schedule moved up.

Inflation rate for the ‘chemicals and chemical products’ group rose 0.1 per cent due to higher prices of menthol, fungicide, liquid, hydrogen peroxide, sulphuric acid, carbon black, shampoo, ammonium sulphate, toilet soap, organic surface active agent, aromatic chemicals, nitrogenous fertilizer, others, di-ammonium phosphate, acrylic fibre, ammonium phosphate, phthalic anhydride, printing ink and adhesive tape (non-medicinal) and additive, polyester chips or polyethylene terepthalate (PET) chips, ethyl acetate, organic solvent, amine, superphospate/phosphatic fertilizer, others, detergent cake, washing soap cake/bar/powder, plasticizer, polyester film (metalized), alkyl benzene, other petrochemical intermediates, polystyrene, expandable and ammonia liquid.   However, the prices of mosquito coil, nitric acid, caustic soda (sodium hydroxide) and varnish (all types), gelatine, paint and adhesive excluding gum, camphor, polyethylene, perfume/scent, sodium silicate, insecticide and pesticide, tooth paste/tooth powder, explosives, agro chemical formulation, mono ethyl glycol and alcohols declined.

Inflation rate for the ‘pharmaceuticals, medicinal chemicals and botanical products’ group declined by 0.1 per cent due to lower prices of anti allergic drugs, medical accessories, antiseptics and disinfectants. However, the prices of antipyretic, analgesic, anti-inflammatory formulations, vaccine for hepatitis-B, antidiabetic drug excluding insulin (ie, tolbutam), plastic capsules, sulpha drugs and antioxidants and cotton wool (medicinal) and anti-retroviral drugs for HIV treatment moved up.

Inflation rate for the ‘rubber and plastics products’ group rose 0.4 per cent due to higher prices of plastic buttons, polythene film and polyester film (non-metalized), rubber cloth/sheet, conveyer belt (fibre based), elastic webbing and rubber crumb, solid rubber tyres/wheels and plastic tube (flexible/non-flexible), 2/3 wheeler rubber tube, plastic film, plastic tank, acrylic/plastic sheet, V-belt, rubberized dipped fabric, polypropylene film, medium and heavy commercial vehicle tyres, plastic furniture and plastic bottle. However, the prices of PVC fittings and other accessories, tractor tyre, processed rubber and plastic box/container declined.

Inflation rate for the ‘other non-metallic mineral products’ group rose 0.4 per cent due to higher prices of graphite rod, non ceramic tiles, pozzolana cement, railway sleeper, ordinary portland cement, marble slab, glass bottle, asbestos corrugated sheet and white cement. However, the price of porcelain sanitary ware, toughened glass, ceramic tiles (vitrified tiles), slag cement and plain bricks declined.

Inflation rate for the ‘basic metals’ group declined by 0.8 per cent due to lower prices of steel forgings (rough), stainless steel pencil ingots/billets/slabs, alloy steel castings, MS pencil ingots and stainless steel coils, strips and sheets, aluminium ingot, mild steel blooms, brass metal/sheet/coils, MS bright bars and aluminium metal and pig iron, stainless steel tubes, aluminium powder, aluminium shapes-bars/rods/flats, alloy steel wire rods, aluminium alloys, angles, channels, sections, steel (coated/not), ferromanganese, silicomanganese, MS castings, cold rolled (CR) coils and sheets, including narrow strip. However, the prices of galvanized iron pipes, rails and ferrochrome and alumnium foil, MS wire rods, stainless steel bars  rods, including flats, aluminium disk and circles, lead ingots, bars, blocks, plates, sponge iron/direct reduced iron (DRI) and hot rolled (HR) coils and sheets, including narrow strip moved up.

Inflation rate for the ‘fabricated metal products, except machinery and equipment’ group rose 0.5 per cent to 114.6 (provisional) from 114.0 (provisional) for the previous month, due to higher prices of forged steel rings, hand tools, steel drums and barrels, bracket, steel structures, bolts, screws, nuts and nails of iron and steel, steel container and stainless steel tank. However, the prices of sanitary fittings of iron and steel, electrical stamping- laminated or otherwise, steel door and stainless steel razor declined.

Inflation rate for the ‘computer, electronic and optical products’ group declined by 0.4 per cent due to lower prices of colour TV, capacitors and air conditioner. However, the prices of electro-diagnostic apparatus used in medical, surgical, dental or veterinary sciences and electronic printed circuit board (PCB)/micro circuit moved up.

Inflation rate for the ‘electrical equipment’ group rose 0.1 per cent due to higher prices of ACSR conductors and connector/plug/socket/holder-electric, fibre optic cables, light fitting accessories, fan, electric switch, refrigerators, electric switch gear control/starter and electric wires and cables. However, the prices of solenoid valve and aluminium wire, electric and other meters, electrical resistors (except heating resistors), insulator, electrical relay/conductor, PVC insulated cable, washing machines/laundry machines and rubber insulated cables declined.

Inflation rate for the ‘machinery and equipment’ group rose 0.2 per cent due to higher prices of drilling machine and packing machine, printing machinery, open end spinning machinery, cranes, oil pump and machinery for plastic products-extruded and water purifier, agriculture implements, soil preparation and cultivation machinery (other than tractors), hydraulic pump, agricultural tractors, grinding or polishing machine, precision machinery equipment/form tools, lathes, centrifugal pumps and conveyors-non-roller type. However, the price of solar power system (solar panel and attachable equipment) and pressure vessel and tank for fermentation and other food processing, chillers, pump sets without motor and injection pump, chemical equipment and system, roller mill (raymond), pneumatic tools, hydraulic equipment, gasket kit, excavator, air gas compressor (including compressor for refrigerator, pharmaceutical machinery and mining, quarrying and metallurgical machinery/parts) declined.

Inflation rate for the ‘motor vehicles, trailers and semi-trailers’ group rose 0.5 per cent due to higher prices of brake pad/brake liner/brake block/brake rubber, others, crankshaft, cylinder liners and passenger vehicles, minibus/bus, piston ring/piston and compressor, gear box and parts, body (for commercial motor vehicles), head lamp and chain. However, the prices of seat for motor vehicles and release valve declined.

Inflation rate for the ‘other transport equipment’ group rose 0.3 per cent due to higher prices of auto rickshaw/tempo/matador/three wheelers and scooters, propellers and blades of boats/ships and bicycles of all types.

Inflation rate for the ‘furniture’ group declined 1.9 per cent due to lower prices of foam and rubber mattress and hospital furniture. However, the price of wooden furniture moved up.

Inflation rate for the ‘other manufacturing’ group declined by 2.1 per cent due to lower prices of playing cards, silver and cricket ball, stringed musical instruments (incl santoor, guitars, etc), intraocular lens, gold and gold ornaments and carrom board and football. However, the price of sports goods of rubber (incl balls) moved up.