India’s wholesale price inflation barely shows at 0.33% in September

WPI-based inflation stood at 5.22 per cent during September in the previous year. 

Build up inflation so far during the financial year (April-September 2019-20) was 1.17 per cent compared to a build-up of 3.96 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 0.6 per cent in September 2019 as per provisional figures.

Among primary articles, inflation rate for the 'food articles' group declined by 0.4 per cent due to lower price of fruits and vegetables, pork, jowar, bajra and arhar, tea, fish and mutton. However, the price of condiments and spices, betel leaves, peas(chawali), egg, ragi, rajma, wheat, barley, paddy, maize, urad, moong, fish, beef, buffalo meat and poultry chicken moved up.

Inflation rate for the 'non-food articles' group declined by 2.5 per cent due to lower prices of floriculture, raw rubber, gaur seed, hides (raw), skins (raw), raw cotton, fodder, coir fibre and sunflower. However, the prices of raw silk, soyabean, gingelly seed (sesamum), raw jute, niger seed, linseed and rape and mustard seed moved up.

Inflation rate for the 'minerals' group rose 6.6 per cent due to higher prices of copper concentrate, lead concentrate, limestone and zinc concentrate.

Inflation rate for the 'crude petroleum and natural gas' group declined by 1.9 per cent due to lower prices of crude petroleum.

Inflation rate for the `fuel and power’ group (weight of 13.15 per cent in WPI)  declined by 0.5 per cent in September 2019.

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

Inflation rate for the 'mineral oils' group declined by 1.1 per cent due to lower prices of furnace oil, naphtha, petroleum coke, bitumen, ATF and petrol. However, the price of LPG and kerosene moved up.

Inflation rate for the `manufactured products’ group, which has a weight of 64.23 per cent in the WPI, rose 0.1 per cent in September 2019.

Within the manufactured products group, inflation rate for the 'food products' group rose 0.9 per cent due to higher prices of macaroni, noodles, couscous and similar farinaceous products, preserved/processed meats, processed and preserved fish, crustaceans and molluscs and products thereof, copra oil, coffee powder with chicory, vanaspati, rice bran oil, butter, ghee, health supplements, prepared animal feeds, spices (including mixed spices), palm oil, gur, rice, non-basmati, sugar, sooji (rawa), wheat bran, rapeseed oil and maida. However, the prices of castor oil, cocoa, chocolate and sugar confectionery, chicken/duck (dressed - fresh/frozen), processed ready to eat food, cotton seed oil, bagasse, groundnut oil, ice cream and gram powder (besan) declined.

Inflation rate for the 'beverages' group rose 0.1 per cent due to higher prices of country liquor and rectified spirit. However, the price of bottled mineral water declined.

Inflation rate for the 'tobacco products' group rose 0.1 per cent due to higher price of bidi.

Inflation rate for the 'textiles' group declined by 0.3 per cent due to lower prices of synthetic yarn, cotton yarn and manufacture of knitted and crocheted fabrics. However, the prices of other textiles and made-up textile articles (except apparel) moved up.

Inflation rate for the 'wearing apparels' group rose 1.9 per cent due to higher prices of wearing apparel (woven), except fur apparel and knitted and crocheted apparel.

Inflation rate for the 'leather and related products' group declined by 0.4 per cent due to lower prices of belt and other articles of leather, chrome tanned leather  and waterproof footwear. However, the prices of canvas shoes and harness, saddles and other related items and leather shoe moved up.

Inflation rate for the 'wood and of wood products and cork' group declined by 0.1 per cent due to lower prices of wooden block (compressed or not), timber/wooden plank, sawn/resawn and plywood block boards. However, the prices of wooden splint and wooden panel and wooden box/crate moved up.

Inflation rate for the 'paper and paper products' group declined by 0.5 per cent due to lower prices of corrugated sheet box, newsprint, map litho paper, bristle paper board and card board. However, the prices of paper carton/box and corrugated paper board moved up.

Inflation rate for the 'printing and reproduction of recorded media' group declined by 1.1 per cent due to lower prices of sticker plastic, journal/periodical and printed form and schedule. However, the prices of printed books and newspaper moved up.

Inflation rate for the 'chemicals and chemical products' group declined by 0.3 per cent due to lower prices of hydrogen peroxide, aromatic chemicals, sulphuric acid, sodium silicate, caustic soda (sodium hydroxide), organic chemicals, other petrochemical intermediates, alcohols, printing ink, polyester chips or polyethylene terepthalate (PET) chips, dye stuff/dyes (incl. dye intermediates, pigments/colours, insecticide and pesticide, ammonium nitrate, ammonium phosphate, polystyrene, expandable, di ammonium phosphate, ethylene oxide, organic solvent, polyethylene, explosive, agarbatti, phthalic anhydride, ammonia liquid, nitric acid, creams and lotions for external application, adhesive (excluding gum and powder coating material). However, the prices of mono ethyl glycol, acetic acid and its derivatives, menthol, adhesive tape (non-medicinal), catalysts, face/body powder, varnish (all types), ammonium sulphate, oleoresin, camphor, aniline (including PNA, ONA. OCPNA), ethyl acetate, alkyl benzene, agro chemical formulation, phosphoric acid, poly vinyl chloride (PVC), fatty acid, polyester film(metalized), other inorganic chemicals, mixed fertilizer, XLPE compound and organic surface active agent (1% each) moved up.

Inflation rate for the 'pharmaceuticals, medicinal chemical and botanical products' group rose by 0.2 per cent due to higher prices of anti-cancer drugs, antiseptics and disinfectants, ayurvedic medicaments and cotton wool (medicinal). However, the prices of anti-retroviral drugs for HIV treatment and steroids and hormonal preparations (including anti-fungal preparations), plastic capsules, antipyretic, analgesic, anti-inflammatory formulations and antidiabetic drug (excluding insulin, i.e. tolbutam) and antioxidants, vials/ampoule, glass, empty or filled and antibiotics and preparations thereof declined.

Inflation rate for the 'rubber and plastics products' group declined by 0.1 per cent due to lower prices of plastic button and plastic furniture, polyester film (non-metalized), rubber crumb, solid rubber tyres/wheels, tractor tyre, plastic box/container , plastic tank, tooth brush, conveyer belt (fibre based), cycle/cycle rickshaw tyre, rubber moulded goods, 2/3 wheeler tyre, rubber cloth/sheet and V belt. However, the prices of plastic components, PVC fittings and other accessories and polythene film and acrylic/plastic sheet, plastic tape, polypropylene film, rubberised dipped fabric, rubber tread, plastic tube (flexible/non-flexible) and rubber components and parts moved up.

Inflation rate for the 'other non-metallic mineral products' group declined by 0.6 per cent due to lower prices of cement superfine, slag cement and white cement, fibre glass (incl. sheet), granite, glass bottle, toughened glass, graphite rod, non ceramic tiles, ordinary portland cement and asbestos corrugated sheet. However, the prices of ordinary sheet glass, lime and calcium carbonate, marble slab and plain bricks moved up.

Inflation rate for the 'fabricated metal products, except machinery and equipment' group rose 0.9 per cent due to higher prices of sanitary fittings of iron and steel, boilers, cylinders, iron/steel hinges, forged steel rings and  electrical stamping- laminated or otherwise, hose pipes in set or otherwise, iron/steel caps and, steel doors. However, the prices of lock/padlock, steel pipes, tubes and poles, steel drums and barrels, pressure cooker, steel container, copper bolts, screws, nuts and aluminium utensils declined.

Inflation rate for the 'computer, electronic and optical products' group declined by 1.0 per cent due to lower prices of colour TV, electronic printed circuit board (PCB)/micro circuit and UPS in solid state drives and air conditioner.

Inflation rate for the 'electrical equipment' group declined by 0.5 per cent due to lower prices of fibre optic cables, refrigerators, PVC insulated cable, connector/plug/socket/holder-electric and electric accumulators, copper wire, insulator , generators and alternators and light fitting accessories. However, the prices of rotor/magneto rotor assembly, domestic gas stove, AC motor, electric switch gear control/starter, jelly filled cables, rubber insulated cables, electric welding machine and amplifier moved up.

Inflation rate for the 'machinery and equipment' group rose by 0.7 per cent due to higher prices of dumper, deep freezers, air gas compressor (including compressor for refrigerator and packing machine), pharmaceutical machinery, air filters, conveyors - non-roller type, hydraulic equipment, cranes, hydraulic pump, precision machinery equipment/form tools, excavator, pump sets without motor, chemical equipment and system, injection pump, lathes, filtration equipment, harvesters and mining, quarrying and metallurgical machinery/parts. However, the price of pressure vessel and tank for fermentation and other food processing, separator and grinding or polishing machine, moulding machine, loader, centrifugal pumps, roller and ball bearings and manufacture of bearings, gears, gearing and driving elements declined.

Inflation rate for the 'motor vehicles, trailers and semi-trailers' group declined by 0.5 per cent due to lower prices of engine and seat for motor vehicles, filter element, body (for commercial motor vehicles), release valve and crankshaft. However, the price of radiators and coolers, passenger vehicles, axles of motor vehicles, head lamp, cylinder liners, shafts of all kinds and brake pad/brake liner/brake block/brake rubber, others moved up.

Inflation rate for the 'other transport equipment' group rose 0.3 per cent due to higher prices of tanker and scooters.

Inflation rate for the 'furniture' group rose by 0.6 per cent due to higher prices of wooden furniture, foam and rubber mattress and steel shutter gate. However, the price of plastic fixtures declined.

Inflation rate for the 'other manufacturing' group rose by 3.2 per cent due to higher prices of silver, gold and gold ornaments, stringed musical instruments (incl santoor, guitars, etc), non mechanical toys, cricket ball, intraocular lens, playing cards, cricket bat and football. However, the prices of plastic moulded-others toys declined.

Food price inflation based on the WPI Food Index consisting of ‘food articles’ from the primary articles group and ‘food products’ from the manufactured products group and has a weight of 24.38 per cent in the wholesale price index, increased from 5.75 per cent in August 2019 to 5.98 per cent in September 2019.

The final inflation rate for July 2019, based on the revised wholesale price index for 'all commodities' (Base: 2011-12=100) stood at 1-17 per cent in July against the provisional estimate of 1.08 per cent reported on 15 July 2019.