Wholesale price inflation hits a 10-month low of 2.76% in January

The fall in inflation rate comes on the back of a smaller increase in the prices of manufactured goods and fuel products.

Wholesale price inflation stood at 3.02 per cent in the corresponding month of the previous year. 

Build-up of inflation so far during the financial year stood at 2.49 per cent compared to a build-up rate of 2.47 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 0.1 per cent in January 2019, according to provisional estimates. 

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

The inflation rate for the ‘non-food articles’ group rose 0.8 per cent due to higher prices of raw jute, raw silk, raw rubber, floriculture, fodder, skins (raw), hides (raw), copra (coconut), soyabean, gingelly seed, sunflower, linseed and groundnut seed. However, the prices of raw cotton, castor seed, guar seed and rape and mustard seed declined.

Inflation rate for the ‘minerals’ group rose 7.8 per cent due to higher prices of zinc concentrate, sillimanite, copper concentrate, limestone and lead concentrate.  However, the price of garnet, manganese ore and iron ore declined.

Inflation rate for the 'crude petroleum and natural gas' group declined by 9.2 per cent due to lower price of crude petroleum. However, the price of natural gas moved up.

Inflation rate for the `fuel and power’ group, which has a weight of 13.15 per cent in the wholesale price index, declined by 4.1 per cent in January 2019.

Among this group, inflation rate for the ‘coal’ group rose 0.2 per cent due to higher price of coking coal.

Inflation rate for the ‘mineral oils’ group declined by 6.7 per cent due to lower prices of ATF, furnace oil, bitumen, LPG, naphtha, kerosene, petrol and HSD.  However, the price of petroleum coke moved up.

Inflation rate for the ‘electricity’ group declined by 1.5 per cent due to lower price of electricity.

Inflation rate for the `manufactured products’ group, which has a weight of 64.23 per cent in the wholesale price index, declined by 0.3 per cent in January 2019.

Among the manufactured products group, inflation rate for the ‘food products’ group rose 0.3 per cent due to higher prices of powder milk, honey, starches and starch products, wheat bran, processed ready-to-eat food, coffee powder with chicory, chicken/duck (dressed - fresh/frozen), salt, spices (including mixed spices), health supplements, copra oil, maida, palm oil, vanaspati, cocoa, chocolate and sugar confectionery, sugar, gur, basmati rice, soyabean oil, cotton seed oil, processing and preserving of fish, crustaceans and molluscs and products thereof, instant coffee and bakery products.  However, the prices of molasses, processed tea, rice products and gram powder (besan), buffalo meat (fresh/frozen), bagasse and rice bran oil, mustard oil, processing and preserving of fruit and vegetables, condensed milk, groundnut oil, other meats (preserved/processed), ghee,  animal feeds and castor oil declined.

Inflation rate for the ‘beverages’ group declined by 0.5 per cent due to lower price of spirits and aerated drinks/soft drinks (including soft drink concentrates). However, the prices of country liquor and rectified spirit moved up.

Inflation rate for the 'tobacco products' group declined by 0.5 per cent, due to lower price of cigarettes.

Inflation rate for the ‘textiles’ group declined by 0.3 per cent due to lower prices of synthetic yarn, knitted and crocheted fabrics, cordage, rope, twine and netting other textiles, texturised and twisted yarn and weaving and finishing of textiles.  However, the prices of viscose yarn and woollen yarn moved up.

Inflation rate for the ‘wearing apparel’ group rose by 1.3 per cent due to higher price of manufacture of wearing apparel (woven), except fur apparel.

Inflation rate for the ‘leather and related products’ group rose by 0.1 per cent due to higher prices of vegetable tanned leather, belt and other articles of leather, waterproof footwear, harness, saddles and other related items. However, the prices of gloves of leather and chrome tanned leather and canvas shoes declined.

Inflation rate for the ‘wood and of products of wood and cork ‘ group declined by 0.1 per cent due to lower prices of lamination wooden sheets/veneer sheets, wood cutting (processed/sized) and wooden block (compressed or not). However, the prices of timber/wooden plank (sawn/resawn) 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 pulp board, corrugated paper board, kraft paper, paper carton/box, newsprint and laminated plastic sheet. However, the prices of tissue paper, laminated paper, map litho paper and duplex paper moved up.

Inflation rate for the ‘printing and reproduction of recorded media’ group declined by 1.4 per cent due to lower prices of hologram, journal/periodical, printed form and schedule and sticker plastic. However, the price of printed books moved up.

Inflation rate for the ‘chemicals and chemical products’ group declined by 0.7 per cent due to lower prices of sulphuric acid, hydrogen peroxide, acetic acid and its derivatives, ethyl acetate, alkyl benzene and polyester chips or polyethylene terepthalate (pet) chips, organic solvent and mono ethyl glycol, urea and nitrogenous fertiliser, carbon black, phthalic anhydride, aniline (including PNA, ONA and OCPNA), ethylene oxide, menthol, plasticizer, fatty acid, polyester film (metalized) and polyethylene and poly propylene (PP), safety matches, polystyrene (expandable), liquid air and other gaseous products, soda ash/washing soda, organic chemicals, polyester fibre fabric, acrylic fibre and varnish (all types).  However, the price of agro chemical formulation, printing ink and creams and lotions for external application, catalysts, caustic soda (sodium hydroxide), camphor and amine, sodium silicate, ammonium sulphate, organic surface active agent, other inorganic chemicals and hair oil/body oil, toilet soap, alcohols, explosive, detergent cake, washing soap cake/bar/powder, ammonium nitrate, paint, ammonia gas, XLPE compound, foundry chemical, mosquito coil, insecticide and pesticide, aromatic chemicals and perfume/scent moved up.

Inflation rate for the ‘pharmaceuticals, medicinal chemical and botanical products’ group rose by 1.1 per cent due to higher prices of antidiabetic drug excluding insulin (ie, tolbutam), API and formulations of vitamins, plastic capsules and anti-malarial drugs and sulpha drugs, antioxidants and vaccine for hepatitis-B. However, the price of anti allergic drugs, vials/ampoule, glass, empty or filled, anti-retroviral drugs for HIV treatment and medical accessories declined.

Inflation rate for the ‘rubber and plastics products’ group declined by 0.1 per cent due to lower prices of rubberised dipped fabric, polyester film (non-metalised), plastic tape, medium and heavy commercial vehicle tyre and rubber tread, plastic bag, rubber crumb, polythene film, plastic box/container, plastic film, polypropylene film and solid rubber tyres/wheels. However, the price of condoms, plastic button, rubber components and parts, processed rubber and tooth brush, medium and heavy commercial vehicle tube and tractor tyre and motor car tube, rubber cloth/sheet, conveyer belt (fibre based), cycle/cycle rickshaw tyre, 2/3 wheeler rubber tube, 2/3 wheeler tyre, plastic tube (flexible/non-flexible) and elastic webbing moved up.

Inflation rate for the ‘other non-metallic mineral products’ group rose by 1.0 per cent due to higher prices of clinker, glass bottle, marble slab, white cement, railway sleeper, ceramic tiles (vitrified tiles), ordinary portland cement, poles and posts of concrete, non ceramic tiles, porcelain sanitary ware and cement blocks (concrete). However, the price of graphite rod and ordinary sheet glass, plain bricks, lime and calcium carbonate and cement superfine declined.

Inflation rate for the ‘basic metals’ group declined by 2.1 per cent due to lower prices of stainless steel pencil ingots/billets/slabs, sponge iron/direct reduced iron (DRI), GP/GC sheet, hot rolled (HR) coils and sheets, including narrow strip and ferrochrome, cold rolled (CR) coils and sheets, including narrow strip, aluminium powder, copper shapes-bars/rods/plates/strips, stainless steel coils, strips and sheets, aluminium alloys, MS pencil ingots, aluminium metal, pig iron, aluminium ingot, aluminium shapes-bars/rods/flats, brass metal/sheet/coils, other ferro alloys, MS wire rods, alloy steel wire rods, mild steel (MS) blooms, alumnium foil, silicomanganese, angles, channels, sections, steel (coated/not), copper metal/copper rings, galvanised iron pipes, cast iron, castings, aluminium disk and circles and MS bright bars. However, the price of alloy steel castings, stainless steel tubes, zinc metal/zinc blocks, MS castings and steel cables moved up.

Inflation rate for ‘fabricated metal products, except machinery and equipment’ group declined by 0.1 per cent due to lower price of sanitary fittings of iron and steel, steel door, jigs and fixture, forged steel rings, metal cutting tools and accessories, stainless steel utensils, cylinders, pressure cooker and electrical stamping-laminated or otherwise. However, the price of copper bolts, screws, nuts and hand tools, stainless steel tank, boilers and steel structures moved up.

Inflation rate for the ‘computer, electronic and optical products’ group declined by 0.4 per cent, due to lower prices of meter (non-electrical), capacitors and computer peripherals. However, the price of sunglasses, electronic printed circuit board (PCB)/micro circuit, colour TV and air conditioner moved up.

Inflation rate for the ‘electrical equipment’ group rose 0.2 per cent due to higher prices of microwave oven, flourescent tube, electric switch and electric welding machine, jelly filled cables, PVC insulated cable, transformer, washing machines/laundry machines and amplifier. However, the price of aluminium/alloy conductor and solenoid valve, rotor/magneto rotor assembly, electric filament type lamps, electric mixers/grinders/food processors, incandescent lamps and generators and alternators, electrical relay/conductor, aluminium wire, electrical resistors (except heating resistors), insulating and flexible wire, air coolers and rubber insulated cables declined.

Inflation rate for the 'machinery and equipment' group rose by 0.1 per cent due to higher prices of pressure vessel, tank for fermentation and other food processing, conveyors-non-roller type, agriculture implements and hydraulic equipment, harvesters, open-end spinning machinery, oil pump, industrial valve, air gas compressor (including compressor for refrigerator), drilling machine, separator and excavator. However, the price of sugar machinery, air conditioning plant, pharmaceutical machinery, chemical equipment and system, filtration equipment, deep freezers, roller and ball bearings and manufacture of bearings, gears, gearing and driving elements, gasket kit, rice mill machinery, packing machine, printing machinery, lathes, mining, quarrying and metallurgical machinery/parts, concrete vibrator and mixture, threshers, cranes, machinery for plastic products-extruded and evaporator declined.

Inflation rate for the `motor vehicles, trailers and semi-trailers’ group rose by 0.2 per cent due to higher prices of engine, seat for motor vehicles and chassis of different vehicle types, head lamp, gear box and parts and radiators and coolers. However, the prices of axles of motor vehicles, crankshaft, minibus/bus, brake pad/brake liner/brake block/brake rubber, (others), chain, shafts of all kinds and release valve declined.

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

Inflation rate for the ‘furniture’ group rose by 0.7 per cent due to higher prices of foam and rubber mattress and wooden furniture. However, the prices of hospital furniture and steel shutter gate declined.

Inflation rate for the 'other manufacturing' group declined by 6.7 per cent due to lower price of gold and gold ornaments, football, plastic moulded and other toys and carrom board. However, the price of silver and cricket ball and cricket bat moved up.

Food price inflation for ‘food articles’ from primary articles group and ‘food product’ from the manufactured products group, which has a combined weight of 24.38 per cent in the wholesale price inflation, increased to 1.84 per cent in January 2019 from 0.07 per cent in December 2018.