Wholesale price inflation jumps to 2.59% in December
14 January 2020
The annual rate of inflation based on wholesale price index (WPI) stood at 2.59 per cent of December 2019, showing a spike after remaining below 1 per cent levels for the past few months, provisional estimates released by the commerce ministry showed.
Wholesale price inflation in the country stood at 0.58 per cent in November 2019 and 3.46 per cent during the corresponding month of the previous year.
Build-up of inflation rate so far this financial year stood at 2.42 per cent compared to a build-up rate of 2.92 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, rose by 1 per cent in December 2019.
Among the primary articles group, inflation rate for the 'food articles' group rose 0.1 per cent due to higher prices of betel leaves, urad, egg, mutton, bajra, jowar, moong, masur, maize, barley, pork, milk , wheat, condiments and spices and arhar. However, the prices of peas/chawali, ragi, fish, coffee, beef and buffalo meat, fruits and vegetables, gram, tea and rajma declined.
Inflation rate for the 'non-food articles' group rose 5.5 per cent in December due to higher prices of floriculture, raw silk, soyabean, fodder, rape and mustard seed, mesta, raw rubber, linseed, sunflower, gingelly seed and cotton seed and skins. However, the prices of gaur seed, niger seed, groundnut seed, castor seed, copra, raw cotton and hides declined.
Inflation rate for the 'minerals' group declined by 0.8 per cent due to lower price of copper concentrate. However, the prices of chromite, limestone, iron ore and lead concentrate moved up.
Inflation rate for the 'crude petroleum and natural gas' group rose by 3.5 per cent due to higher price of crude petroleum.
Inflation rate for the `fuel and power’ group, which has a weight of 13.15 per cent in the WPPI, remained unchanged at its previous month’s level.
Within the `fuel and power’ group, inflation rate for the 'coal' group rose 1.4 per cent due to higher price of coking coal .
Inflation rate for the 'mineral oils' group declined by 0.4 per cent due to lower prices of petroleum coke, furnace oil and bitumen. However, the prices of naphtha, LPG and petrol moved up.
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 December 2019.
Within the manufactured products group, inflation rate for the 'food products' group rose 1.0 per cent due to higher prices of palm oil, rice bran oil, groundnut oil, cotton seed oil, mustard oil, soyabean oil, condensed milk, wheat bran, rapeseed oil, molasses, sunflower oil, ghee and butter, copra oil, instant coffee, of processed ready to eat food, cocoa, chocolate, sugar confectionery, starches and starch products, bagasse, wheat flour (atta) and vanaspati. However, the prices of macaroni, noodles, couscous and similar farinaceous products, processed tea, honey and buffalo meat, fresh/frozen, prepared animal feeds, other meats, preserved/processed, processed and preserved fish, crustaceans and molluscs and products thereof, gur, health supplements, coffee powder with chicory, rice, sugar, salt and spices (including mixed spices) declined.
Inflation rate for the 'beverages' group declined by 0.3 per cent due to lower prices of country liquor, bottled mineral water and rectified spirit.
Inflation rate for the 'tobacco products' group declined by 0.2 per cent due to lower prices of cigarette, biri and other tobacco products.
Inflation rate for the 'textiles' group declined by 0.2 per cent due to lower prices of woollen yarn and other textiles.
Inflation rate for the 'wearing apparel' group rose 0.1 per cent due to higher prices of leather garments, including jackets, hosiery goods, others like cotton and cardigans and pullovers and knitted apparels. However, the prices of shawls and scarves (knitted), trousers/pants made of cotton and/or manmade fibre declined.
Inflation rate for the 'leather and related products' group rose 0.2 per cent due to higher prices of belt and other articles of leather, athletic/sport shoes, leather shoe and gloves of leather. However, the prices of chrome tanned leather, travel goods, handbags, office bags, etc, harness, saddles and other related items and canvas shoes declined.
Inflation rate for the 'wood and products of wood and cork ' group declined by 0.4 per cent due to lower prices of wooden box/crate and timber/wooden plank. However, the prices of wood cutting, processed/sized, wooden panel, wooden block (compressed or not) and plywood block boards moved up.
Inflation rate for the 'paper and paper products' group declined by 0.2 per cent due to lower prices of corrugated sheet box, corrugated paper board, tissue paper, base paper, pulp board and duplex paper. However, the prices of laminated plastic sheet, card board and newsprint, bristle paper board, poster paper and paper carton/box moved up.
Inflation rate for the 'printing and reproduction of recorded media ' group declined by 1.3 per cent due to lower prices of journal/periodical and printed books. However, the prices of printed form and schedule, hologram (3D), sticker plastic moved up.
Inflation rate for the 'chemicals and chemical products' group declined by 0.5 percent due to lower prices of poly propylene (PP), acetic acid and its derivatives, sulphuric acid, menthol, organic chemicals and carbon black, alcohols, camphor, rubber chemicals, soda ash/washing soda, explosive, polyethylene and nitrogenous fertilizer, others, viscose staple fibre, phthalic anhydride, ethyl acetate, aniline (including PNA, ONA, OCPNA), poly vinyl chloride (PVC), polystyrene, expandable, insecticide and pesticide, dye stuff/dyes (including dye intermediates ), pigments/colours, aromatic chemicals, ammonium nitrate, oleoresin, ammonium phosphate, polyester chips or polyethylene terepthalate (PET) chips, sodium silicate, di-ammonium phosphate, liquid air and other gaseous products, catalysts, agro chemical formulation and hair oil/body oil. However, the price of ammonium sulphate, foundry chemicals, varnish (all types), mono ethyl glycol, organic surface active agent, hydrogen peroxide, shampoo, fatty acid, detergent cake, washing soap cake/bar/powder, plasticiser, phosphoric acid, ammonia liquid, other inorganic chemicals, toilet soap, adhesive tape (non-medicinal), tooth paste/tooth powder and additive moved up.
Inflation rate for the 'pharmaceuticals, medicinal chemical and botanical products' group rose by 1.0 per cent due to higher prices of vials/ampoule, glass, empty or filled and anti-retroviral drugs for HIV treatment, antidiabetic drug excluding insulin (ie tolbutam), API, formulations of vitamins, antibiotics and preparations thereof, digestive enzymes, antacids and cotton wool (medicinal). However, the price of antipyretic, analgesic, anti-inflammatory formulations, plastic capsules, anti-allergic drugs and antioxidants declined.
Inflation rate for the 'rubber and plastics products' group rose 0.6 per cent due to higher prices of elastic webbing, plastic bottle and plastic components, condoms, tooth brush, plastic box/container, polypropylene film, rubber cloth/sheet and medium and heavy commercial vehicle tyre, tractor tyre, plastic button, 2/3 wheeler tyre, plastic furniture, rubber crumb and conveyer belt (fibre based). However, the prices of rubber components and parts, plastic bag, rubber tread, acrylic/plastic sheet, plastic film and plastic tube (flexible/non-flexible), plastic tank, PVC fittings and other accessories, cycle/cycle rickshaw tyre, motor car tyre, rubber moulded goods, thermocol and 2/3 wheeler rubber tube declined.
Inflation rate for the 'other non-metallic mineral products' group rose 0.3 per cent due to higher price of glass bottle and porcelain sanitary ware, ordinary sheet glass, railway sleeper, cement blocks (concrete), asbestos corrugated sheet, poles and posts of concrete, stone, chip, clinker, plain bricks, electric insulating material, granite and marble slab. However, the prices of graphite rod, cement superfine, non-ceramic tiles, ceramic tiles (vitrified tiles) and toughened glass, lime and calcium carbonate, pozzolana cement and slag cement declined.
Inflation rate for the 'basic metals' group rose 0.2 per cent due to higher prices of mild steel (MS) blooms, MS wire rods, alloy steel castings, hot rolled (HR) coils, sheets (including narrow strip), sponge iron/direct reduced iron (DRI), pig iron, MS bright bars, aluminum powder, steel cables, ferromanganese and MS pencil ingots. However, the prices of aluminum disk and circles, brass metal/sheet/coils, ferrochrome and cast iron, castings, other ferro alloys, aluminum alloys, alloy steel wire rods and stainless steel bars and rods (including flats), ferrosilicon, zinc metal/zinc blocks, stainless steel coils, strips and sheets, aluminum foil, aluminum shapes (bars/rods/flats), MS castings, steel forgings (rough and lead ingots), bars, blocks, plates declined.
Inflation rate for the 'fabricated metal products, except machinery and equipment' group rose 0.1 per cent due to higher prices of copper bolts, screws, nuts, hand tools, electrical stamping (laminated or otherwise), metal cutting tools and accessories, hose pipes in set or otherwise, steel structures and forged steel rings. However, the prices of sanitary fittings of iron and steel, steel pipes, tubes and poles, steel drums and barrels, jigs and fixture, steel doors and cylinders declined.
Inflation rate for the 'computer, electronic and optical products' group rose by 0.5 per cent due to higher prices of colour TV, microscope, meter (non-electrical), electronic printed circuit board (PCB)/micro circuit. However, the prices of electro-diagnostic apparatus used in medical, surgical, dental or veterinary sciences and air conditioner declined.
Inflation rate for the 'electrical equipment' group declined by 0.3 per cent due to lower prices of dry cells such as torch light batteries, transformer, flourescent tube, electric switch, connector/plug/socket/holder-electric, PVC insulated cable, insulating and flexible wire, batteries, electric mixers/grinders/food processors, electrical relay/conductor and light fitting accessories. However, the prices of air coolers, rotor/magneto rotor assembly, insulator, domestic gas stove, jelly filled cables and fibre optic cables, ACSR conductors, electric accumulators, copper wire, solenoid valve, AC motor and electrical resistors (except heating resistors) moved up.
Inflation rate for the 'machinery and equipment' group rose 0.4 per cent due to higher prices of cranes, gasket kit, chillers, air filters, roller and ball bearings, precision machinery equipment/form tools, bearings, gears, gearing and driving elements, mining, quarrying and metallurgical machinery/parts and hydraulic pump, conveyors - non-roller type, industrial valve, sugar machinery, packing machine, lathes, excavator and filtration equipment. However, the prices of pressure vessel and tank for fermentation and other food processing and chemical equipment and system, solar power system (solar panel and attachable equipment), deep freezers, machinery for plastic products - extruded, hydraulic equipment, air gas compressor (including compressor for refrigerator), motor starter, printing machinery, evaporator and injection pump declined.
Inflation rate for the 'motor vehicles, trailers and semi-trailers' group declined by 0.7 per cent due to lower prices of engine and shock absorbers, head lamp, body (for commercial motor vehicles) and piston ring/piston and compressor. However, the prices of brake pad/brake liner/brake block/brake rubber, etc, crankshaft, release valve, axles of motor vehicles, shafts of all kinds and filter element moved up.
Inflation rate for the 'other transport equipment' group rose 0.1 per cent due to higher prices of bicycles of all types. However, the price of scooters declined.
Inflation rate for the 'furniture' group declined by 1.0 per cent due to lower prices of foam and rubber mattress. However, the prices of hospital furniture, plastic fixtures and steel shutter gate moved up.
Inflation rate for 'other manufacturing' group rose 0.4 per cent due to higher prices of playing cards, football and plastic moulded others toys. However, the prices of stringed musical instruments (including santoor, guitars, etc) and cricket ball, non-mechanical toys, silver, cricket bat and table tennis table declined.
The rate of inflation based on WPI food index consisting of ‘food articles’ from the primary articles group and ‘food product’ from the manufactured products group , having a combined weight of 24.38 per cent in the WPI, increased from 9.02 per cent in November to 11.05 per cent in December.
The final inflation rate based on the revised wholesale price index for all commodities for October 2019 (Base: 2011-12=100) stood at 0.00 per cent against the 0.16 per cent (provisional) reported on 14 November 2019.