India’s wholesale price inflation eases to 4.53% in August

Build-up of inflation rate in the financial year so far was 3.18 per cent compared to a build-up of 1.41 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 (WPI) rose by 0.1 per cent in August 2018.

Inflation rate for the ‘food articles’ group rose 0.1 per cent due to higher prices of gram, moong, ragi, bajra, urad, barley, wheat, tea, coffee, jowar and masur, maize, rajma. However, the price of egg, poultry chicken, fish, peas/chawali, betel leaves, arhar, beef and buffalo meat and pork declined.

Inflation rate for ‘non-food articles’ group rose 1.2 per cent due to higher prices of groundnut seed, guar seed, castor seed, gingelly seed, raw rubber, floriculture, rape and mustard seed, raw wool, fodder, mesta, linseed, cotton seed, raw jute, sunflower, safflower (kardi seed) and raw cotton. However, the price of soyabean and niger seed and hides declined.

Inflation rate for the ‘minerals’ group declined by 4.9 per cent due to lower prices of copper concentrate, sillimanite and manganese ore. However, the price of garnet, zinc concentrate, lead concentrate, bauxite, limestone, chromite and iron ore moved up.

Inflation rate for ‘crude petroleum and natural gas’ group rose 0.5 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 WPI, rose 0.5 per cent in August 2018.

Inflation rate for the ‘mineral oils’ group rose 0.8 per cent due to higher prices of LPG, petroleum coke, kerosene and ATF and naphtha and bitumen.

Inflation rate for the `manufactured products’ group, which has a weight of 64.23 per cent in WPI, rose 0.3 per cent in August 2018.

Inflation rate for the ‘manufactured food products’ group remained unchanged despite a rise in the prices of groundnut oil, cotton seed oil cake, sooji (rawa), maida, wheat flour, salt, gram powder, gur, honey, coffee powder with chicory, rice bran extract, molasses, mustard oil cake and spices (including mixed spices),  cotton seed oil, ice cream, castor oil, rice products, fish frozen (canned/processed), instant coffee, biscuit, cookies and sunflower oil. However, a decline in price was recorded for chicken/duck (dressed-fresh/frozen), palm oil, condensed milk, fruit juice (including concentrates), butter, basmati rice, processed tea and soya preparations excluding oil.

Inflation rate for the ‘manufacture of beverages’ group rose 0.3 per cent due to higher prices of bottled mineral water, rectified spirit and beer.

Inflation rate for the ‘tobacco products’ group rose 0.5 per cent due to higher prices of other tobacco products. However, the price of cigarette declined.

Inflation rate for the ‘manufacture of textiles’ group rose 0.4 per cent due to higher prices of made-up textile articles, except apparel and synthetic yarn, texturised and twisted yarn, manufacture of knitted and crocheted fabrics and cotton yarn. However, the price of manufacture of other textiles declined.

Inflation rate for the ‘manufacture of wearing apparel’ group rose 0.7 per cent due to higher price of manufacture of knitted and crocheted apparel.

Inflation rate the ‘manufacture of leather and related products’ group declined by 0.4 per cent due to lower prices of belt and other articles of leather and chrome tanned leather. However, the price of travel goods, handbags, office bags, etc, waterproof footwear, vegetable tanned leather and canvas shoes moved up.

Inflation rate for the ‘manufacture of wood and wood products and cork‘ group rose 0.6 per cent due to higher prices of laminated wooden sheets/veneer sheets and plywood block boards. However, the prices of timber/wooden plank, sawn/resawn declined.

Inflation rate for the ‘manufacture of paper and paper products’ group rose 0.7 per cent due to higher prices of press board and pulp board, corrugated sheet box and kraft paper, map litho paper, newsprint, corrugated paper board and paper for printing and writing. However, the price of card board, paper carton/box and laminated paper declined.

Inflation rate for the ‘printing and reproduction of recorded media’ group rose 1.8 per cent due to higher prices of printed books and printed labels/posters/calendars. However, the prices of sticker plastic and printed form and schedule declined.

Inflation rate for the ‘manufacture of chemicals and chemical products’ group rose 0.4 per cent due to higher prices of ammonium sulphate and sodium silicate, epoxy (liquid), alcohols, phthalic anhydride, printing ink, di-ammonium phosphate, organic chemicals, face/body powder, fungicide (liquid), soda ash/washing soda, polystyrene (expandable), ammonia liquid, polyester chips or polyethylene terepthalate (PET) chips, additive, mixed fertilizer, poly propylene (PP), ammonium phosphate, amine, carbon black, adhesive (excluding gum), insecticide and pesticide, powder coating material, hydrogen peroxide, superphospate/phosphatic fertilizer, others, XLPE compound, agro chemical formulation, polyester film (metalised), camphor, dye stuff/dyes (incl. dye intermediates & pigments/colours), alkyl benzene, acrylic fibre, tooth paste/tooth powder, other petrochemical intermediates and urea. However, the prices of menthol, organic surface active agent, nitric acid, polyester fibre fabric and sulphuric acid, gelatine, acetic acid and its derivatives, aromatic chemicals, organic solvent, ammonia gas and aniline (including PNA, ONA and OCPNA), toilet soap, ammonium nitrate, rubber chemicals, ethylene oxide and paint declined.

Inflation rate for the ‘manufacture of pharmaceuticals, medicinal chemicals and botanical products’ group rose 1.4 per cent due to higher prices of anti-cancer drugs, antibiotics and preparations thereof, anti-inflammatory preparation, medical accessories and anti-malarial drugs and antidiabetic drug (excluding insulin), antipyretic, analgesic, anti-inflammatory formulations, ayurvedic medicaments and API and formulations of vitamins. However, the price of steroids and hormonal preparations (including anti-fungal preparations) and vials/ampoule, glass, empty or filled, anti-allergic drugs, simvastatin, plastic capsules and cotton wool (medicinal) declined.

Inflation rate for the ‘manufacture of rubber and plastics products’ group declined by 0.2 per cent due to lower prices of rubber moulded goods, elastic webbing and polypropylene film, polyester film, polythene film, plastic button, plastic box/container, plastic bag and solid rubber tyres/wheels and rubberised dipped fabric, motor car tube, rubber cloth/sheet, V-belt and plastic components.  However, the price of rubber components and parts, medium and heavy commercial vehicle tyre, 2/3 wheeler tyre, tractor tyre, conveyer belt, plastic furniture, rubber crumb, tooth brush, plastic tape and condoms moved up.

Inflation rate for the ‘manufacture of other non-metallic mineral products’ group rose 0.2 per cent due to higher prices of ordinary sheet glass and toughened glass, railway sleeper, glass bottle, porcelain sanitary ware, clinker, non-ceramic tiles and fibre glass (incl. sheet) and cement blocks, ceramic tiles and porcelain crockery.  However, the prices of white cement, poles and posts of concrete, asbestos corrugated sheet, slag cement, cement superfine and granite declined.

Inflation rate for the ‘manufacture of basic metals’ group declined by 0.4 per cent due to lower prices of aluminium alloys, ferrochrome, brass metal/sheet/coils, MS wire rods, angles, channels, sections, steel (coated/not) and GP/GC sheet, MS bright bars, aluminium powder and alumnium foil, copper metal/copper rings, zinc metal/zinc blocks, stainless steel pencil ingots/billets/slabs, copper shapes - bars/rods/plates/strips, hot rolled (HR) coils and sheets (including narrow strip), rails, MS pencil ingots, aluminium shapes - bars/rods/flats, aluminium ingot, alloy steel wire rods, cold rolled (CR) coils and sheets, including narrow strip, sponge iron/direct reduced iron (DRI) and aluminium castings. However, the price of steel forgings - rough and silicomanganese, MS castings and ferromanganese and alloy steel castings, stainless steel coils, strips and sheets, stainless steel tubes and other ferro alloys moved up.

Inflation rate for the ‘manufacture of fabricated metal products (except machinery and equipment)’ group rose 0.8 per cent due to higher prices of electrical stamping - laminated or otherwise - and forged steel rings, steel structures, hose pipes in set or otherwise and steel door and stainless steel utensils, steel pipes, tubes and poles, cylinders and bracket. However, the prices of pressure cooker, stainless steel tank and copper bolts, screws, nuts, boilers and hand tools, stainless steel razor and jigs and fixture declined.

Inflation rate for the ‘manufacture of computer, electronic and optical products’ group rose 1.2 per cent due to higher prices of laptops, colour TV and air conditioner and watch and sunglasses. However, the prices of meter (non-electrical), electronic printed circuit board (PCB)/micro circuit and capacitors  declined.

Inflation rate for the ‘manufacture of machinery and equipment’ group rose 0.5 per cent due to higher prices of chemical equipment and system, moulding machine, air or vacuum pump and agriculture implements, precision machinery equipment/form tools, pump sets without motor, drilling machine and grinding or polishing machine and rice mill machinery, hydraulic pump, industrial valve, chillers, injection pump, clutches and shaft couplings, roller mill (Raymond), mining, quarrying and metallurgical machinery/parts, harvesters, soil preparation & cultivation machinery (other than tractors) and deep freezers. However, the prices of cranes, packing machine, gasket kit, sugar machinery, pharmaceutical machinery, oil pump, printing machinery, air gas compressor (including compressor for refrigerator and hydraulic equipment) declined.

Inflation rate for the ‘manufacture of motor vehicles, trailers and semi-trailers’ group rose 0.7 per cent due to higher prices of release valve, seat for motor vehicles, shock absorbers, passenger vehicles, body (for commercial motor vehicles), gear box & parts, radiators & coolers, engine, minibus/bus, chain and wheels/wheels and parts. However, the prices of shafts of all kinds, brake pad/brake liner/brake block/brake rubber, others, cylinder liners and filter element declined.

Inflation rate for the ‘manufacture of other transport equipment’ group rose 0.4 per cent due to higher prices of tanker, bicycles of all types and motor cycles.  However, the price of wagons declined.

Inflation rate for the ‘manufacture of furniture’ group rose 0.3 per cent due to higher prices of iron/steel furniture and steel shutter gate.

Inflation rate for the ‘other manufacturing’ group rose 1.8 per cent due to higher prices of stringed musical instruments (incl. santoor, guitars etc.), cricket ball,  plastic moulded toys and gold and gold ornaments. However, the prices of non mechanical toys and silver declined.

The rate of inflation based on WPI Food Index (weight of 24.38 per cent in WPI)  consisting of ‘food articles’ from `primary articles’ group and food products from the `manufactured products’ group declined from (-) 0.86 per cent in July 2018 to (-) 2.25 per cent in August 2018.

The final inflation rate for June 2018, based on the revised Wholesale Price Index for ‘All Commodities’ (Base: 2011-12=100) stood at 5.68 per cent against 5.77 per cent (provisional) reported on 16 July 2018.