Wholesale price inflation rate climbs to 2.93% in February
14 March 2019
The annual rate of inflation based on the wholesale price index (WPI) stood at 2.93 per cent (provisional) in February 2019 compared to 2.76 per cent for the previous month, provisional estimates released on Wednesday showed. WPI inflation rate for February last year stood at 2.74 per cent.
Build-up of inflation rate so far during the financial year was 2.75 per cent compared to a build up rate of 2.56 per cent 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, declined by 0.2 per cent, compared to the previous month.
Within the primary group, inflation rate for the ‘food articles’ group declined by 0.2 per cent due to lower prices of peas/chawali, tea, fruits and vegetables, condiments and spices, mutton and gram. However, the prices of betel leaves, maize, arhar, bajra, barley, jowar, poultry chicken, fish, moong, masur, wheat, paddy, urad, pork, ragi and egg moved up.
Inflation rate for the ‘non-food articles’ group rose 1.0 per cent due to higher prices of tanning materials, sunflower, floriculture, soyabean, mesta, fodder, gingelly seed, niger seed, cotton seed, safflower (kardi seed), raw jute, groundnut seed, raw silk and raw wool. However, the prices of guar seed, raw cotton, skins (raw), raw rubber, copra (coconut), coir fibre, rape and mustard seed and linseed declined.
Inflation rate for the ‘minerals’ group declined by 8 per cent due to lower prices of copper concentrate, garnet, chromite, sillimanite, iron ore, zinc concentrate, lead concentrate and limestone. However, the prices of manganese ore and bauxite moved up.
Inflation rate for the 'crude petroleum and natural gas' group rose 1.8 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 the wholesale price index, rose by 1.7 per cent in february 2019.
Inflation rate for the ‘mineral oils’ group rose 3.3 per cent due to higher prices of furnace oil, naphtha, HSD, petroleum coke, petrol and kerosene. However, the prices of LPG and bitumen declined.
Inflation rate for the `manufactured products’ group, which has a weight of 64.23 per cent in the wholesale price index, rose 0.2 per cent in February 2019.
Within the manufactured products group, inflation rate for the ‘food products’ group rose 0.5 per cent on the back of a hike in the prices of molasses, meat (preserved/processed), macaroni, noodles, couscous and similar farinaceous products, health supplements, cotton seed oil, salt, starch, starch products and wheat bran, coffee powder with chicory, ghee and powder milk, palm oil, rice (non-basmati), soyabean oil, groundnut oil, wheat flour (atta), animal feeds, condensed milk, castor oil, processed and preserved fruit and vegetables and bakery products. However, the prices of processed tea, chicken/duck, buffalo meat, gur, rice products, butter, fish, crustaceans, molluscs and products thereof, mustard oil, rice bran oil, instant coffee, cocoa, chocolate and sugar confectionery declined.
Inflation rate for the ‘beverages’ group rose 0.2 per cent due to higher prices of spirits and aerated drinks/soft drinks (incl. soft drink concentrates). However, the prices of wine and country liquor declined.
Inflation rate for the ‘textiles’ group rose 0.2 per cent due to higher costs of weaving and finishing of textiles. However, the prices of texturised and twisted yarn, manufacture of cordage, rope, twine and netting and manufacture of other textiles declined.
Inflation rate for the ‘wearing apparel’ group declined by 0.7 per cent due to lower cost of manufacture of knitted and crocheted apparel.
Inflation rate for the ‘leather and related products’ group declined by 0.5 per cent due to lower prices of chrome tanned leather, leather shoe, waterproof footwear and harness, saddles and other related items. However, the price of vegetable tanned leather and athletic/sport shoes moved up.
Inflation rate for the ‘wood, wood products and cork ‘ group rose 0.7 per cent due to higher price of particle boards, lamination wooden sheets/veneer sheets, wooden block-compressed or not and plywood block boards. However, the prices of timber/wooden plank, sawn/resawn and wood cutting, processed/sized and wooden box/crate declined.
Inflation rate for the ‘paper and paper products’ group declined by 0.4 per cent due to lower prices of newsprint and corrugated sheet box, duplex paper, base paper and hard board. However, the price of paper carton/box moved up.
Inflation rate for the ‘printing and reproduction of recorded media’ group rose 0.1 per cent due to higher prices of hologram and printed form and schedule.
Inflation rate for the ‘chemicals and chemical products’ group rose 0.3 per cent due to higher prices of organic surface active agent, urea, mosquito coil, nitrogenous fertilizer, varnish, plasticizer, caustic soda (sodium hydroxide), liquid air and other gaseous products, face/body powder, explosives, organic solvent, menthol, carbon black, soda ash/washing soda, poly propylene (PP), printing ink, toilet soap, insecticide and pesticide, powder coating material, polyester film (metalised), ammonium nitrate, XLPE compound, mixed fertilizer, aromatic chemicals, other inorganic chemicals, adhesive excluding gum, polyester fibre fabric and fatty acid. However, the price of hydrogen peroxide, acetic acid and its derivatives, sulphuric acid, shampoo and ethyl acetate, phosphoric acid and other petrochemical intermediates, oleoresin, ammonium sulphate, phthalic anhydride and creams and lotions for external application, ethylene oxide, polystyrene [expandable], ammonium phosphate, poly vinyl chloride, dye stuff/dyes and pigments/colours, alkyl benzene, organic chemicals, camphor, aniline (including PNA, ONA and OCPNA), di-ammonium phosphate and mono ethyl glycol declined.
Inflation rate for the ‘pharmaceuticals, medicinal chemical and botanical products’ group rose 0.3 per cent due to higher prices of sulpha drugs, vials/ampoule, glass, empty or filled, anti-retroviral drugs for HIV treatment, antioxidants, antipyretic, analgesic, anti-inflammatory formulations, API and formulations of vitamins and ayurvedic medicaments. However, the prices of antibiotics and preparations thereof and simvastatin, plastic capsules and anti-malarial drugs declined.
Inflation rate for the ‘rubber and plastic products’ group declined by 0.6 per cent due to lower prices of tractor tyre and plastic box/container, plastic bottle, conveyer belt (fibre based), medium and heavy commercial vehicle tyre and rubberized dipped fabric, plastic button, plastic tape, plastic components, acrylic/plastic sheet, elastic webbing, rubber tread, plastic film, polythene film and processed rubber. However, the prices of rubber cloth/sheet, plastic furniture, polyester film (non-metalized), polypropylene film, PVC fittings and other accessories, plastic tube (flexible/non-flexible), plastic tank, tooth brush, 2/3 wheeler tyre, 2/3 wheeler rubber tube and cycle/cycle rickshaw tyre moved up.
Inflation rate for the ‘other mon-metallic mineral products’ group rose 1.0 per cent due to higher prices of porcelain sanitary ware, toughened glass, poles and posts of concrete, ordinary portland cement, electric insulating material, clinker, pozzolana cement, non-ceramic tiles, glass bottle, cement superfine, marble slab, stone, chip and asbestos corrugated sheet. However, the prices of ordinary sheet glass, graphite rod, ceramic tiles (vitrified tiles), granite and fibre glass (incl sheet) declined.
Inflation rate for the ‘basic metals’ group rose 0.4 per cent due to higher prices of stainless steel pencil ingots/billets/slabs, steel forgings-rough and alloy steel wire rods, copper shapes-bars/rods/plates/strips, aluminium alloys, copper metal/copper rings, galvanized iron pipes, other ferro alloys, MS pencil ingots, aluminium powder, brass metal/sheet/coils and stainless steel tubes. However, the prices of silicomanganese, steel cables, aluminium ingot, aluminium castings, alloy steel castings, rails, pig iron, cold rolled (CR) coils and sheets (incl narrow strip, ferrosilicon, alumnium foil, aluminium shapes-bars/rods/flats and MS castings) declined.
Inflation rate for the ‘fabricated metal products, except machinery and equipment’ group declined by 0.3 per cent due to lower prices of cylinders and bracket, stainless steel tank and hand tools. However, the prices of forged steel rings, lock/padlock, bolts, screws, nuts and nails of iron and steel, steel drums and barrels, copper bolts, screws, nuts, iron/steel cap, electrical stamping (laminated or otherwise), jigs and fixture, stainless steel utensils and sanitary fittings of iron and steel moved up.
Inflation rate for the ‘computer, electronic and optical products’ group declined by 0.1 per cent due to lower prices of capacitors, electro-diagnostic apparatus (used in medical, surgical, dental or veterinary sciences), x-ray equipment and electronic printed circuit board (PCB)/micro circuit. However, the price of meter (non-electrical) moved up.
Inflation rate for the ‘electrical equipment’ group declined by 0.2 per cent due to lower prices of safety fuse, PVC insulated cable, batteries, connector/plug/socket/holder-electric, fibre optic cables, incandescent lamps, electric mixers/grinders/food processors, washing machines/laundry machines, generators and alternators, rotor/magneto rotor assembly and electric wires and cables. However, the prices of solenoid valve, ACSR conductors, electric switch gear control/starter, jelly filled cables, electric switch, refrigerators, copper wire and rubber insulated cables moved up.
Inflation rate for the 'machinery and equipment' group declined by 0.3 per cent due to lower prices of pressure vessel and tank for fermentation and other food processing, dumper, rice mill machinery, gasket kit, filtration equipment, material handling, lifting and hoisting equipment, air gas compressor (including compressor for refrigerator), hydraulic equipment, moulding machine, water purifier and separator. However, the prices of chillers, conveyors-non-roller type, injection pump, roller mill (Raymond), chemical equipment and system, roller and ball bearings, centrifugal pumps, air or vacuum pump, manufacture of bearings, gears, gearing and driving elements, oil pump, cranes, mining, quarrying and metallurgical machinery/parts, deep freezers and pharmaceutical machinery moved up.
Inflation rate for the ‘motor vehicles, trailers and semi-trailers’ group rose 0.3 per cent due to higher prices of head lamp, radiators and coolers, axles of motor vehicles, engine, wheels/wheels and parts, filter element and cylinder liners. However, the prices of brake pad/brake liner/brake block/brake rubber, others and seat for motor vehicles, silencer and damper declined.
Inflation rate for the ‘furniture’ group rose 1.0 per cent due to higher prices of hospital furniture, steel shutter gate, iron/steel furniture and plastic fixtures. However, the prices of foam and rubber mattress declined.
Inflation rate for the 'other manufacturing' group declined by 0.5 per cent due to lower prices of sports goods of rubber (incl. balls) and gold and gold ornaments. However, the prices of playing cards, stringed musical instruments (incl santoor, guitars, etc), plastic moulded toys and silver moved up.
Food price inflation based on the wholesale price index for `food articles’, which has a weight of 24.38 per cent in the wholesale price index (consisting of food articles from both the primary and manufactured product groups) increased to 3.29 per cent in February 2019 from 1.84 per cent in January.
The final WPI inflation rate for December 2018 based on the revised wholesale price index for `all commodities’ for the month stood at 3.46 per cent (provisional) compared to 3.80 per cent (provisional) as reported on 14 January 2019.