India’s wholesale price inflation rate declines to 3.58% in December

The annual rate of inflation based on wholesale price index (WPI) stood at 3.58 per cent (provisional) for the month in December, 2017 compared to 3.93 per cent in the previous month and 2.10 per cent during the corresponding month of the previous year, provisional figures released by the commerce ministry showed.

Build-up of inflation during the financial year so far was 2.21 per cent compared to a build up of 3.71 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) declined by 2.9 per cent in December 2017.

Among primary articles, inflation rate for the 'food articles' group declined by 4.3 per cent due to lower prices of fruits and vegetables, peas / chawali, gram, rajma, urad, masur, coffee, tea, maize, egg, fish and poultry chicken. However, the prices of betel leaves, bajra, jowar, barley and condiments and spices and arhar, moong and pork moved up.

Inflation rate for the 'non-food articles' group rose 1.8 per cent due to higher prices of floriculture, copra (coconut), raw silk,  raw cotton, raw wool, raw rubber, raw hides and soyabean, cotton seed, gingelly seed and guar seed, rape and mustard seed, castor seed, raw jute, skins (raw), sunflower and coir fibre.

However, the prices of mesta and fodder, groundnut seed, safflower (kardi seed) and niger seed and linseed declined.

Inflation rate for the 'minerals' group declined by 5.4 per cent due to lower price of copper concentrate, lead concentrate and zinc concentrate. However, the prices of chromite, manganese ore, bauxite and phosphorite moved up.

For the 'crude petroleum and natural gas' group, the inflation rate rose 4.8 per cent due to higher price of crude petroleum. However, the price of natural gas declined.

Inflation rate for the `fuel and power' group, which has a weight of 13.15 per cent in the wholesale price index rose 1.6 per cent in November 2017.

Within the group, inflation rate for 'coal' group rose 0.6 per cent due to higher price of lignite.

Inflation rate for the 'mineral oils' group rose 2.8 per cent due to higher prices of bitumen, ATF, naphtha, furnace oil, kerosene, HSD, petrol and LPG.

Inflation rate for the 'manufactured products' group, which has a weight of 64.23 per cent in the wholesale price index, rose by 0.1 per cent in November 2017.

Among manufactured products, inflation rate for the 'manufactured food products' group declined by 0.4 per cent due to lower prices of molasses, gur, gram powder (besan), sugar, honey, milk powder, coffee powder, bagasse, processed tea, maida, sooji (rawa), chicken / duck (dressed-fresh/frozen), basmati rice and instant coffee. However, the prices of processing and preserving of fish, crustaceans molluscs and products thereof, copra oil, meats (preserved/processed), manufacture of macaroni, noodles, couscous and similar farinaceous products, cotton seed oil, wheat bran, spices (including mixed spices) and buffalo meat, fresh/frozen and mustard oil, sunflower oil, rice bran oil, groundnut oil, castor oil, palm oil, rice (non-basmati), manufacture of cocoa, chocolate and sugar confectionery and processing and preserving of fruit and vegetables moved up.

Inflation rate for 'manufacture of beverages' group rose 0.2 per cent due to higher prices of bottled mineral water, aerated drinks/soft drinks (incl.soft drink concentrates). However, the prices of wine, beer and spirits declined.

Inflation rate for the 'manufactured tobacco products' group declined by 2.1 per cent due to lower price of cigarette. However, the prices of other tobacco products and biri moved up.

Inflation rate for the 'manufactured textiles' group declined by 0.4 per cent due to lower prices of manufacture of cordage, rope, twine and netting and weaving and finishing of textiles. However, the prices of viscose yarn and manufacture of other textiles, woollen yarn, texturised and twisted yarn, manufacture of knitted and crocheted fabrics, cotton yarn and synthetic yarn moved up.

Inflation rate for the 'manufacture of wearing apparel' group rose 1.0 per cent due to higher prices of manufacture of knitted and crocheted apparel.

Inflation rate for the 'manufacture of leather and related products' group rose 0.7 per cent due to higher prices of belt and other articles of leather and leather shoe and travel goods, handbags, office bags, etc. However, the prices of harness, saddles and other related items, vegetable tanned leather and chrome tanned leather declined.

Inflation rate for the 'manufacture of wood and wood products and cork' group declined by 1.0 per cent due to lower prices of wooden board (non-electrical), wooden box/crate, wooden blocks and timber/wooden plank, sawn/resawn and wooden splint. However, the prices of wood cutting, processed/sized and plywood block boards moved up.

Inflation rate for the 'manufacture of paper and paper products' group rose 0.3 per cent due to higher prices of tissue paper and paper carton/box, newsprint, base paper, bristle paper board, paper for printing and writing and kraft paper. However, the prices of corrugated sheet box and duplex paper declined.

Inflation rate for the 'printing and reproduction of recorded media' group rose 0.8 per cent due to higher prices of newspaper, journal/periodical and printed labels/posters/calendars, sticker plastic and printed form and schedule.  However, the price of hologram declined.

Inflation rate for the 'manufacture of chemicals and chemical products' group rose 0.5 per cent due to higher prices of menthol, camphor, acetic acid and its derivatives, sulphuric acid, oleoresin, sodium silicate, hydrogen peroxide and organic solvent, shampoo, ammonium sulphate, acrylic fibre, ammonia liquid, nitric acid, ethyl acetate, caustic soda (sodium hydroxide) and alkyl benzene, rubber chemicals, fatty acid, organic chemicals, dye stuff/dyes (incl. dye intermediates & pigments/colours), alcohols, diammonium phosphate and mosquito coil, creams and lotions for external application, other inorganic chemicals, ethylene oxide, adhesive excluding gum, varnish (all types), printing ink, superphospate / phosphatic fertilizer, others, paint, fungicide, liquid, aromatic chemicals, ammonium nitrate, other petrochemical intermediates, tooth paste/tooth powder, detergent cake, washing soap cake/bar/powder, insecticide and pesticide, soda ash/washing soda and amine. However, the prices of catalysts, adhesive tape (non-medicinal), polyester film (metalized), organic surface active agent, phosphoric acid and perfume/scent and liquid air and other gaseous products, phthalic anhydride, additive, foundry chemical, carbon black, mixed fertilizer, aniline (including PNA, ONA, OCPNA) and mono ethyl glycol declined.

Inflation rate for the 'manufacture of pharmaceuticals, medicinal chemical and botanical products' group rose 1.2 per cent due to higher prices of anti-cancer drugs, plastic capsules, API and formulations of vitamins and antipyretic, analgesic, anti-inflammatory formulations,  ayurvedic medicaments, antibiotics and preparations thereof  and cotton wool (medicinal). However, the prices of anti inflammatory preparation, vaccine for hepatitis-B, antiseptics and disinfectants, antioxidants and vials/ampoule, glass, empty or filled and anti-malarial drugs declined.

Inflation rate for 'manufacture of rubber and plastics products' group declined by 0.1 per cent due to lower prices of rubberised dipped fabric, rubber tubes-not for tyres, polyester film (non-metalised), rubber crumb and rubber cloth/sheet, rubber moulded goods, PVC fittings and other accessories, plastic film, plastic tube (flexible/non-flexible), tooth brush, plastic button, medium and heavy commercial vehicle tyre, conveyer belt (fibre based) and rubber tread. However, the prices of rubber components and parts, plastic bag and solid rubber tyres/wheels, plastic box/container, polypropylene film, tractor tyre and motor car tyre moved up.

Inflation rate for 'manufacture of other non-metallic mineral products' group rose 0.2 per cent due to higher prices of cement blocks (concrete), porcelain sanitary ware, porcelain crockery and railway sleeper and ordinary sheet glass, lime and calcium carbonate, ordinary portland cement, poles and posts of concrete, marble slab and pozzolana cement. However, the price of stone, chip, asbestos corrugated sheet and cement superfine and toughened glass, non ceramic tiles, clinker and  graphite rod declined.

Inflation rate for the 'manufacture of basic metals' group rose 1.0 per cent due to higher prices of stainless steel pencil ingots/billets/slabs, ferrosilicon, mild steel (MS) blooms, MS pencil ingots and angles, channels, sections, steel (coated/not), alloy steel wire rods, stainless steel bars and rods, including flats, sponge iron/direct reduced iron (DRI), stainless steel tubes and MS castings and hot rolled (HR) coils and sheets, including narrow strip, pig iron, steel cables, MS wire rods, stainless steel coils, strips and sheets and cast iron, castings. However, the prices of MS bright bars, other ferroalloys and ferrochrome, cold rolled (CR) coils and sheets, including narrow strip, silicomanganese, aluminium ingot, copper shapes- bars/rods/plates/strips, aluminium alloys, ferromanganese, steel forgings-rough and aluminium powder declined.

Inflation rate for the 'manufacture of fabricated metal products, except machinery and equipment' group declined by 0.2 per cent due to lower prices of cylinders, copper bolts, screws, nuts, electrical stamping - laminated or otherwise - iron/steel cap, steel door, hand tools, stainless steel razor and jigs and fixtures. However, the prices of steel structures, forged steel rings, lock/padlock, steel container, steel pipes, tubes and poles, metal cutting tools and accessories and steel drums and barrels moved up.

Inflation rate for the manufacture of computer, electronic and optical products' group rose 0.4 per cent due to higher prices of colour TV and meter (non-electrical) and UPS in solid state drives. However, the prices of capacitors and sunglasses and electronic printed circuit board (PCB)/micro circuit declined.

Inflation rate for the 'manufacture of machinery and equipment' group declined by 0.2 per cent due to lower prices of pressure vessel and tanks for fermentation and other food processing, cranes, excavator, solar power system (solar panel and attachable equipment), pharmaceutical machinery, air filters, concrete vibrator and mixture and air gas compressor including compressor for refrigerator and clutches and shaft couplings and mining, quarrying and metallurgical machinery/parts. However, the prices of conveyors - non-roller type, drilling machine, gasket kit and agriculture implements, air or vacuum pump, filtration equipment, sugar machinery, chemical equipment and system, industrial valve, oil pump, centrifugal pumps and rice mill machinery moved up.

Inflation rate for the 'manufacture of motor vehicles, trailers and semi-trailers' group declined by 0.1 per cent due to lower price of minibus/bus, brake pad/brake liner/brake block/brake rubber, others, filter element and radiators and coolers.  However, the price of crankshaft and release valve, light, medium and heavy commercial vehicles, shafts of all kinds, body (for commercial motor vehicles) and cylinder liners moved up.

Inflation rate for 'manufacture of other transport equipment' group declined by 0.2 per cent due to lower price of propellers and blades of boats/ships. However, the price of tanker moved up.

Inflation rate for the 'manufacture of furniture' group declined by 2.0 per cent due to lower price of foam and rubber mattress, wooden furniture and plastic fixtures. However, the price of iron/steel furniture moved up.

Inflation rate for 'other Manufacturing' group rose 2.8 per cent due to higher price of playing cards, gold and gold ornaments and cricket ball. However, the price of silver and cricket bat and sports goods of rubber (incl. balls) declined.

The rate of inflation based on WPI food index consisting of 'food articles' from primary articles group and 'food product' from manufactured products group declined from 4.10 per cent in November 2017 to 2.91 per cent in December, 2017.