India’s WPI inflation marginally lower at 2.47% in March

Wholesale food prices in March fell 0.07 per cent year-on-year, compared with a 0.07 per cent rise a month earlier, data showed.

The annual rate of inflation, however, was far below the 5.11 per cent level in the corresponding period last year.

Build-up of inflation rate in the financial year so far was 2.47 per cent compared to a build up rate of 5.11 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 0.5 per cent in March 2018.

Among primary articles, inflation rate for the ‘food articles’ group declined by 0.4 per cent due to lower prices of egg, gram, tea, coffee, poultry chicken and condiments and spices, rajma, fish, masur, bajra, fruits and vegetables, beef and buffalo meat. However, the prices of ragi, jowar, fish (seafood), peas / chawali, moong, betel leaves, wheat, paddy and pork moved up.

Inflation for ‘non-food Articles’ group declined by 0.3 per cent in march 2018 due to lower prices of guar seed, niger seed, floriculture, raw cotton, cotton seed, skins (raw), gingelly seed, copra (coconut), linseed, castor seed, raw jute, groundnut seed, rape and mustard seed. However, the prices of raw silk, mesta, hides (raw), sunflower, soyabean, fodder and raw wool, coir fibre and raw rubber moved up.

For the ‘minerals’ group inflation rate declined by 2.0 per cent in march 2018 due to lower prices of copper concentrate and phosphorite. However, the prices of iron ore, chromite, manganese ore, limestone, zinc concentrate and lead concentrate moved up.

Inflation rate for ‘crude petroleum and natural gas’ group declined by 0.5 per cent due to lower prices of crude petroleum.

For the 'fuel and power’ group, which has a weight of 13.15 per cent in WPI, it declined by 0.1 per cent in march 2018.

Inflation rate for the ‘mineral oils’ group declined by 1.4 per cent due to lower prices of LPG, naphtha, HSD, bitumen, petrol and furnace oil. However, the price of petroleum coke and kerosene moved up.

For the ‘electricity’ group the inflation rate rose 2.9 per cent due to higher prices of electricity. 

Inflation rate for the 'manufactured products’ group, which has a weight of 64.23 per cent in the WPI, rose 0.4 per cent in March 2018.

Among manufactured products, the index for the ‘food products’ group rose 1.0 per cent due to higher prices of processed tea, vanaspati, palm oil, buffalo meat, fresh / frozen and rice bran oil, manufacture of macaroni, noodles, couscous and similar farinaceous products, honey and cotton seed oil, rice products, health supplements, spices (including mixed spices), basmati rice, coffee powder with chicory, soyabean oil, wheat bran, sunflower oil, ghee, processed ready to eat food, animal feeds, ice-cream and chicken / duck (dressed-fresh / frozen). However, the prices of molasses, salt, condensed milk, processed and preserved fish, crustaceans & molluscs & products thereof, gram powder (besan), meats (preserved/processed), groundnut oil, mustard oil, rice, non-basmati, rapeseed oil, powder milk, sooji (rawa), butter, sugar and copra oil declined.

Inflation rate for the 'beverages’ group rose 0.4 per cent due to higher prices of beer and wine. However, the price of rectified spirit and country liquor declined.

The rate for the ‘tobacco products’ group declined by 0.4 per cent due to lower prices of cigarettes. However, the price of biri moved up.

For the ‘textiles’ group it rose 0.4 per cent due to higher prices of viscose yarn, knitted and crocheted fabrics, synthetic yarn and  weaving and finishing of textiles. However, the price of cordage, rope, twine and netting and texturised and twisted yarn declined.

For the ‘wearing apparel’ group inflation rate declined by 0.9 per cent due to lower prices of wearing apparel (woven except fur apparel) and knitted and crocheted apparel.

Inflation rate for the ‘leather and related products’ group declined by 0.9 per cent due to lower prices of belt and other articles of leather, leather gloves, athletic / sport shoes and canvas shoes, harness, saddles and other related items, leather shoe, vegetable tanned leather and travel goods, handbags, office bags, etc.

Inflation rate for the ‘wood and of wood products and cork’ group rose 0.6 per cent due to higher prices of lamination wooden sheets / veneer sheets and wooden splint and wooden panel. However, the price of wooden box/crate declined.

For the ‘paper and paper products’ group rose by 0.8 per cent due to higher prices of paper bag, including craft paper bag, duplex paper, newsprint and paper carton / box and map litho paper and laminated plastic sheet. However, the price of card board, base paper and kraft paper and corrugated paper board declined.

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

For the ‘chemicals and chemical products’ group rose by 0.2 per cent due to higher prices of hydrogen peroxide, aniline (including PNA, ONA, OCPNA),  gelatine, organic surface active agent, plasticizer, carbon black, sodium silicate, acetic acid and its derivatives, catalysts, tooth paste/tooth powder, nitric acid, hair oil/body oil, polyester chips or polyethylene terepthalate (PET) chips, insecticide and pesticide, di-ammonium phosphate, polyester film (metalized), XLPE compound, acrylic fibre, polyester fibre fabric, varnish (all types) and poly vinyl chloride (PVC), nitrogenous fertilizer, others, alkyl benzene, other inorganic chemicals, liquid air and other gaseous products, mosquito coil, powder coating material, mixed fertilizer, ethylene oxide, other petrochemical intermediates and viscose staple fibre. However, the prices of sulphuric acid and creams and lotions for external application, caustic soda (sodium hydroxide), menthol, paint, aromatic chemicals, toilet soap, ammonium sulphate, agro chemical formulation, adhesive tape (non-medicinal), rubber chemicals and poly propylene (PP) and polyethylene, fungicide, liquid, ethyl acetate, amine, phosphoric acid, fatty acid, detergent cake, washing soap cake/bar/powder, organic chemicals, alcohols, mono ethyl glycol, printing ink and polystyrene, expandable declined.

Inflation rate for the ‘pharmaceuticals, medicinal chemicals and botanical products’ group rose 0.2 per cent due to higher prices of vaccine for hepatitis-B, digestive enzymes and antacids, anti cancer drugs, antidiabetic drug excluding insulin (i.e. tolbutam) and antipyretic, analgesic, anti-inflammatory formulations and plastic capsules and anti-retroviral drugs for HIV treatment. However, the prices of vaccine for polio and sulpha drugs, antioxidants, simvastatin, vials/ampoule, glass, empty or filled and antiseptics and disinfectants declined.

Inflation rate for the ‘rubber and plastics products’ group rose 0.5 per cent due to higher prices of V belt, rubber components and parts, plastic box/container, rubber moulded goods, plastic film, elastic webbing and condoms and rubber crumb, plastic tape, plastic bag, plastic bottle, plastic button, acrylic/plastic sheet, tooth brush and thermocol. However, the prices of rubber tread, rubber cloth/sheet, tractor tyre, medium and heavy commercial vehicle tyres and conveyer belts (fibre based) and 2 - 3 wheeler tyres, polypropylene film, plastic components, plastic tank, plastic furniture, polythene film, processed rubber, rubberised dipped fabric and motor car tyre declined.

For ‘other non-metallic mineral products’ group it declined by 0.5 per cent due to lower prices of toughened glass, graphite rod, clinker, porcelain crockery and fibreglass, granite, ordinary portland cement, pozzolana cement, porcelain sanitary ware, lime and calcium carbonate. However, the prices of plain bricks, ordinary sheet glass, ceramic tiles (vitrified tiles) and cement superfine, non ceramic tiles, slag cement marble slab, railway sleeper, cement blocks (concrete), opthalmic lens and stone, chip moved up.

Inflation rate for the ‘basic metals’ group rose 1.5 per cent due to higher prices of stainless steel pencil ingots / billets / slabs, GP / GC sheets and pig iron, other ferro alloys, ferrochrome, hot rolled coils and sheets, including narrow strip and alloy steel wire rods, angles, channels, sections, steel (coated / not), cold rolled coils and sheets, including narrow strip, silicomanganese, MS wire rods, stainless steel bars and rods, including flats, mild steel blooms and ferrosilicon and ferromanganese, stainless steel coils, strips and sheets, galvanised iron pipes, stainless steel tubes, cast iron, castings, MS pencil ingots, aluminum foil, lead ingots, bars, blocks, plates and zinc metal/zinc blocks. However, the prices of aluminium disk and circles, alloy steel castings and steel cables and copper shapes - bars / rods / plates / strips, aluminium shapes-bars / rods / flats and aluminium ingot declined.

Inflation rate for the ‘fabricated metal products, except machinery and equipment’ group rose 0.4 per cent due to higher prices of sanitary fittings of iron and steel, hand tools, steel drums and barrels, steel container and steel pipes, tubes and poles, jigs and fixtures, bolts, screws, nuts and nails of iron and steel. However, the prices of forged steel rings, iron/steel cap and electrical stamping (laminated or otherwise), copper bolts, screws, nuts, aluminium utensils, stainless steel utensils, metal cutting tools andaccessories and pressure cooker declined.

Inflation rate for the ‘computer, electronic and optical products’ group declined by 0.3 per cent due to lower prices of x-ray equipment, colour TV, UPS in solid state drives and capacitors. However, the prices of electronic printed circuit board (PCB)/micro circuit, meter (non-electrical) and microscope moved up.

Inflation rate for the ‘electrical equipment’ group rose 0.1 per cent due to higher prices of jelly filled cables, light fitting accessories, solenoid valve, electric switch gear control / starter and ACSR conductors and electric wires and cables, electric welding machine, rubber insulated cables, connector / plug/socket/holder-electric, fan, dry cells such as torch light batteries, copper wire, incandescent lamps, safety fuse, electrical relay/conductor and insulating & flexible wire. However, the prices of fibre optic cables and AC motor, aluminium / alloy conductor, washing machines/laundry machines, electrical resistors (except heating resistors), electric filament type lamps and domestic gas stove declined.

Inflation rate for the ‘machinery and equipment’ group rose 0.3 percent due to higher prices of printing machinery, water purifier and cranes, chemical equipment and system, loader, filtration equipment, air gas compressor (including compressor for refrigerator and packing machine), open-end spinning machinery, conveyors (non-roller type), pressure vessels and tanks for fermentation and other food processing and solar power system (solar panel and attachable equipment), pharmaceutical machinery, moulding machine, mining, quarrying and metallurgical machinery/parts, deep freezers, clutches and shaft couplings, harvesters, material handling, lifting and hoisting equipment, air filters, mixing machine, machinery for plastic products (extruded), pneumatic tools and chillers.  However, the prices of precision machinery equipment/form tools, hydraulic pump, gasket kit, roller mill (Raymond), oil pump, agriculture implements, roller and ball bearings, gears, gearing and driving elements, injection pumps and lathes declined. 

Inflation rate for the ‘motor vehicles, trailers and semi-trailers’ group declined by 0.1 per cent due to lower prices of steering gear control system, brake pad/brake liner/brake block/brake rubber, others and crankshaft and minibus/bus. However, the prices of chain, shafts of all kinds and release valve and silencer and damper, chassis of different vehicle types, gear box and parts, filter element, engine and shock absorbers moved up.

Inflation rate for ‘other transport equipment’ group declined by 1.3 per cent due to lower prices of motor cycles. However, the prices of bicycles of all types and scooters moved up.

Inflation rate for the ‘furniture’ group rose 2.7 per cent due to higher prices of foam and rubber mattress, steel shutter gate, iron/steel furniture and wooden furniture and plastic fixtures. However, the prices of hospital furniture declined.

Inflation rate for the ‘other manufacturing’ group declined by 2.5 per cent due to lower prices of gold and gold ornaments, playing cards, cricket ball and stringed musical instruments (incl santoor, guitars, etc). However, the prices of plastic moulded-others toys moved up.

The rate of inflation based on WPI food index consisting of ‘food articles’ from the primary articles group and ‘food products’ from the manufactured products group declined from 0.07 per cent in February 2018 to (-) 0.07 per cent in March, 2018.

The final wholesale price inflation rate for January 2018 based on the final wholesale price index for ‘all commodities’ stood at 3.02 per cent against 2.84 per cent (provisional) as reported on 14 February.