Wholesale price inflation falls to 5.7% in March as consumer price inflation rises

The annual rate of inflation, based on the wholesale price index (WPI) declined to 5.70 per cent in March 2017, compared to 6.55 per cent in the previous month, provisional data released today showed.

WPI-based inflation rate stood at (-) 0.45 per cent in March last year.

Build-up of inflation so far during the financial year was 5.70 per cent compared to a build-up of (-) 0.45 per cent in the corresponding period of the previous year.

Inflation rate for the `primary articles' group, which has a weight of 20.12 per cent in the wholesale price index, declined by 0.2 per cent in March 2017.

Among primary articles group, inflation rate for the 'food articles' group increased marginally due to higher prices of fruits and vegetables.

Inflation rate for the 'non-food articles' group declined by 1.8 per cent due to lower prices of flowers, linseed, rape and mustard seed, raw rubber and fodder, copra, gingelly seed and soyabean, sunflower and skins (leather). However, the prices of guar seed, castor seed, safflower (kardi seed), groundnut seed, mesta, raw silk and coir fibre and raw cotton moved up.

Inflation rate for the 'minerals' group rose 1.5 per cent in March 2017 due to higher prices of manganese ore, chromite, copper ore, iron ore, zinc concentrate and sillimanite. However, the prices of magnesite and phosphorite declined.

Inflation rate for the `fuel and power', which has a weight of 14.91 per cent in the wholesale price index, declined by 0.1 per cent in March 2017 due to lower prices of bitumen, and furnace oil. However, the price of LPG and aviation turbine fuel moved up.

Inflation rate for the `manufactured products' group, which has a weight of 64.97 per cent in the wholesale price index, declined by 0.1 per cent in March 2017.

Within the manufactured products group, the inflation rate for the `food products' group declined by 1.2 per cent in March 2017 due to lower prices of tea leaf (blended), wheat flour (atta), processed prawn, maida, copra oil, coffee powder, sooji (rawa), tea leaf (unblended), cotton seed oil, gola (cattle feed), rice bran oil, mustard and rapeseed oil, sunflower oil, tea dust (unblended), tea dust (blended) and mixed spices. However, the price of milk powder and ghee, gur, gingelly oil and groundnut oil moved up.

Inflation rate for the 'beverages, tobacco and tobacco products' group rose 0.1 per cent due to higher price of dried tobacco.

For the 'textiles' group, the rate of inflation rose 0.2 per cent due to higher prices of tyre cord fabric, gunny, hessian cloth, manmade fibre, jute yarn and cotton fabric.

Inflation rate for the 'wood and wood products' group rose 0.7 per cent due to higher prices of plywood and fibre board.

For the 'paper and paper products', it group rose 0.7 per cent due to higher prices of paper rolls, kraft paper and bags, paper cartons / boxes and printing and writing paper. However, the price of card board declined.

For the 'leather and leather products' group the rate of inflation rose 0.1 per cent due to higher prices of leather handbags/wallets.

Inflation rate for the 'rubber and plastic products' group rose 1.0 per cent due to higher price of rubber products, plastic products and tyres.

For the 'chemicals and chemical products', it group rose 0.5 per cent due to higher prices of non-cyclic compound, synthetic resin, adhesive and gum and basic organic chemicals and washing soap, vitamins and ayurvedic medicines. However, the prices of safety matches/match box, photographic goods and pesticides declined.

Inflation rate for the 'non-metallic mineral products' group declined by 0.6 per cent due to lower price of grey cement and white cement. However, the price of marbles moved up.

The rate of inflation for the 'basic metals, alloys and metal products' group rose 0.1 per cent due to higher price of pig iron, rounds, pencil ingots and steel rods and lead, sheets, melting scrap and rebars. However, the price of ferro chrome, billets, steel: pipes and tubes, steel castings, sponge iron and HRC, furniture, silver, CRC and iron castings declined.

However, for the 'machinery and machine tools' group the inflation rate declined by 0.1 per cent due to lower prices of heating elements, conductor, textile machinery, ball / roller bearing and heat exchangers. However, the price of electronic PCB / micro circuit and electric motor starters, lamps, electric switches and electric switch gears moved up.

Inflation rate for the 'transport, equipment and parts' group rose 0.2 per cent due to higher prices of motor vehicles.

The final inflation rate for January based on the revised wholesale price index for all commodities stood at 5.53 per cent compared to 5.25 per cent (provisional) as reported on 14 February 2017.