India’s wholesale price inflation climbs to 5.13% in September

WPI inflation stood at 3.14 per cent during the corresponding month of the previous year. Build-up of inflation rate in the financial year so far was 3.87 per cent compared to a build-up rate of 1.50 per cent in the corresponding period of the previous year.

Inflation rate for the primary articles group, having a weight of 22.62 per cent in the wholesale price index, rose by 0.2 per cent in September 2018. 

Inflation rate for the ‘food articles’ group under the primary articles group declined by 0.2 per cent due to lower prices of fish, egg, urad, gram, ragi, fruits and vegetables and peas. However, the price of betel leaves, tea, pork, beef & buffalo meat, bajra, fish, condiments and spices, maize, poultry, arhar, barley, mutton, wheat, masur and moong moved up.

Inflation rate for the ‘non-food articles’ group declined by 0.2 per cent due to lower prices of skins (raw), hides (raw), industrial wood, copra (coconut), soyabean, mesta, guar seed, raw rubber, raw cotton, groundnut seed and coir fibre. However, the price of floriculture, niger seed, gingelly seed, raw jute, sunflower, tobacco, safflower (kardi seed), rape and mustard seed, raw wool, raw silk, cotton seed, linseed and fodder moved up.

Inflation rate for the ‘minerals’ group rose 9.7 per cent due to higher prices of garnet, copper concentrate, sillimanite, iron ore, manganese ore and chromite.  However, the prices of zinc concentrate and lead concentrate declined.

Inflation rate for 'crude petroleum and natural gas' group rose 1.1 per cent due to higher price of natural gas.

Inflation rate for the ‘fuel and power’ group, which has a weight of 13.15 per cent in WPI, rose 2.2 per cent in September 2018.

Under the group, the 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 rose 3.7 per cent due to higher prices of lube oils, naphtha, HSD, petrol, LPG, furnace oil, bitumen, kerosene and ATF.  However, the price of petroleum coke declined.

The inflation rate for the ‘manufactured products’ group that has a weight of 64.23 per cent in the WPI, rose 0.6 per cent in September 20a8. 

Within the group, inflation rate for the ‘food products’ group rose 0.3 per cent due to higher prices of processing and preserving of fish, crustaceans and molluscs and products thereof, basmati rice, coffee powder with chicory, maida and sooji (rawa), wheat flour, sunflower oil, gur, macaroni, noodles, couscous and similar farinaceous products, ice cream, other meats, preserved/processed, animal feeds, chicken/duck, rice bran oil, castor oil, starches and starch products, rice (non-basmati), wheat bran and groundnut oil. However, the price of instant coffee, honey and molasses, processed tea, processing and preserving of fruit and vegetables, vanaspati, sugar and copra oil and condensed milk, gram powder (besan) and bagasse) declined.

Inflation rate for the ‘beverages’ group rose 0.3 per cent due to higher prices of rectified spirit and country liquor and spirits. However, the price of bottled mineral water declined.

Inflation rate for the ‘tobacco products’ group declined by 0.3 per cent due to lower prices of other tobacco products.

Inflation rate for the ‘manufacture of textiles’ group rose 1.1 per cent due to higher prices of synthetic yarn and woollen yarn, texturised and twisted yarn, manufacture of other textiles and manufacture of made-up textile articles, except apparel and viscose yarn, manufacture of cordage, rope, twine and netting and cotton yarn. However, the price of manufacture of knitted and crocheted fabrics declined.

Inflation rate for the ‘wearing apparel’ group declined by 0.4 per cent due to lower prices of knitted and crocheted apparel.

Inflation rate for the ‘leather and related products’ group rose 0.4 per cent due to higher prices of leather shoe and harness, saddles and other related items, waterproof footwear and belt and other articles of leather. However, the price of vegetable tanned leather and chrome tanned leather, gloves of leather and plastic/PVC chappals declined.

Inflation rate for the ‘wood and wood products and cork ‘ group rose 0.7 per cent due to higher prices of lamination wooden sheets/veneer sheets, and  wooden block (compressed or not) particle boards, wood cutting (processed/sized) and plywood block boards. However, the price of wooden box/crate declined.

Inflation rate for the ‘paper and paper products’ group rose 0.4 per cent due to higher prices of tissue paper, map litho paper, newsprint, base paper, corrugated paper board, poster paper, laminated plastic sheet, kraft paper and paper for printing and writing. However, the price of paper bag, including craft paper bag, corrugated sheet box and laminated paper declined.

Inflation rate for the ‘printing and reproduction of recorded media’ group rose 0.3 per cent due to higher prices of printed form and schedule, journal/periodical, sticker plastic and newspaper. However, the price of hologram and printed books declined.

Inflation rate for the ‘chemicals and chemical products’ group rose 0.6 per cent due to higher prices of mono ethyl glycol and ethyl acetate, organic surface active agent and polyester film (metalized), menthol and varnish, acetic acid and its derivatives, rubber chemicals, polyester fibre fabric, ammonium sulphate, XLPE compound, nitrogenous fertiliser, others, carbon black, phosphoric acid and amine, liquid air and other gaseous products, camphor, ammonia gas, ammonium phosphate, di-ammonium phosphate, plasticizer, polyester chips or polyethylene terepthalate (PET) chips, phthalic anhydride, polyethylene, aromatic chemicals, caustic soda (sodium hydroxide), ethylene oxide, other petrochemical intermediates,  perfume/scent, superphospate/phosphatic fertiliser, others, catalysts, alcohols, organic solvent, hair oil/body oil, alkyl benzene, soda ash/washing soda, paint, sulphuric acid, viscose staple fibre, organic chemicals and other inorganic chemicals. However, the price of gelatine, hydrogen peroxide and agarbatti, nitric acid, acrylic fibre, toilet soap, agro chemical formulation, fungicide (liquid), printing ink, insecticide and pesticide, aniline (including PNA, ONA, OCPNA), dye stuff/dyes (incl. dye intermediates & pigments/colours and polystyrene), declined.

Inflation rate for the ‘pharmaceuticals, medicinal chemical and botanical products’ group declined by 0.2 per cent due to lower prices of antidiabetic drug (excluding insulin, ie, tolbutam), antipyretic, analgesic, anti-inflammatory formulations, anti-retroviral drugs for HIV treatment, API and formulations of vitamins and anti allergic drugs. However, the prices of antibiotics and preparations thereof, sulpha drugs, plastic capsules, cotton wool (medicinal), ayurvedic medicaments and anti cancer drugs moved up.

Inflation rate for the ‘rubber and plastics products’ group rose 0.4 per cent due to higher prices of polyester film (non-metalized), rubber cloth/sheet, plastic tube (flexible/non-flexible), plastic components and processed rubber, rubber tubes (not for tyres), tractor tyre, elastic webbing and rubber crumb, thermocol, plastic bags, acrylic/plastic sheet, polypropylene film, rubber tread, rubberized dipped fabric, plastic film, tooth brush, 2/3 wheeler tyre and polythene film. However, the price of condoms and plastic button, motor car tube, rubber components and parts, plastic box/container, plastic furniture, conveyer belt (fibre based), plastic tank and solid rubber tyres/wheels declined.

Inflation rate for ‘other non-metallic mineral products’ remained unchanged.   Rise in price was recorded for porcelain sanitary ware, poles and posts of concrete, white cement and graphite rod, granite, marble slab, railway sleeper and cement blocks. Howevever, a decline in prices was recorded for ordinary sheet glass and cement superfine, porcelain crockery, ceramic tiles (vitrified tiles) and slag cement and glass bottle and stone.

Inflation rate for the ‘basic metals’ group rose 2.0 per cent due to higher prices of aluminium alloys, sponge iron/direct reduced iron (DRI), angles, channels, sections, steel (coated/not), MS bright bars, alloy steel wire rods, MS pencil ingots, pig iron, cold rolled (CR) coils and sheets (including narrow strip), MS wire rods, mild steel blooms, aluminium ingot, aluminium castings, GP/GC sheet, hot rolled (HR) coils and sheets, including narrow strip and MS castings and rails, stainless steel tubes, brass metal/sheet/coils, ferrochrome, alumnium foil, aluminium shapes-bars/rods/flats, alloy steel castings, steel forgings-rough and steel cables. However, the prices of copper shapes-bars/rods/plates/strips, copper metal/copper rings, aluminium disk and circles, stainless steel pencil ingots/billets/slabs, aluminium metal, ferrosilicon, other ferro alloys, lead ingots, bars, blocks, plates and silicomanganese declined.

Inflation rate for the ‘fabricated metal products, except machinery and equipment’ group declined by 0.3 per cent due to lower prices of electrical stamping (laminated or otherwise), boilers, steel door, forged steel rings, bolts, screws, nuts and nails of iron and steel and cylinders. However, the prices of stainless steel tank, metal cutting tools and accessories, hose pipes in set or otherwise, steel structures, steel drums and barrels, iron/steel cap and pressure cooker moved up.

Inflation rate for the ‘computer, electronic and optical products’ group rose 0.7 per cent due to higher prices of meter (non-electrical), sunglasses and capacitors, telephone sets (including mobile handsets), watch and electronic printed circuit board (PCB)/micro circuit. However, the prices of microscope and electro-diagnostic apparatus, used in medical, surgical, dental or veterinary sciences declined.

Inflation rate for the ‘manufacture of electrical equipment’ group rose 0.1 per cent due to higher prices of solenoid valve, motors and other DC equipment, fibre optic cables, air coolers, domestic gas stove, cooling tower, ACSR conductors, insulator, insulating and flexible wire, electrical relay/conductor, PVC insulated cable, aluminium/alloy conductor, rotor/magneto rotor assembly, generators and alternators, jelly filled cables, light fitting accessories and aluminium wire. However, the prices of microwave oven, electric welding machine, refrigerators and transformers, safety fuse, electrical resistors (except heating resistors), rubber insulated cables, electric filament type lamps and electric and other meters declined.

Inflation rate for the ‘machinery and equipment’ group rose 0.2 per cent due to higher prices of dumper, precision machinery equipment/form tools, chillers, injection pump, mining, quarrying and metallurgical machinery/parts, deep freezers and air gas compressor (including compressor for refrigerator), sewing machines, motor starter, pharmaceutical machinery, water pump, centrifugal pumps, agriculture implements, grinding or polishing machine, hydraulic pump, agricultural tractors, lathes, roller mill (Raymond), concrete vibrator and mixer and sugar machinery. However, the prices of conveyors (non-roller type), chemical equipment and system, machinery used in the milling industry, open end spinning machinery, furnaces and ovens, hydraulic equipment and roller and ball bearings,  manufacture of bearings, gears, gearing and driving elements, water purifier and threshers declined.

Inflation rate for the ‘motor vehicles, trailers and semi-trailers’ group rose 0.3 per cent due to higher prices of radiators and coolers, axles of motor vehicles and minibus/bus, piston ring/piston and compressor, wheels/wheels and parts, silencer and damper and shafts of all kinds. However, the price of crankshaft, brake pad/brake liner/brake block/brake rubber, others, release valve and chain declined.

Inflation rate for the ‘other transport equipment’ group rose 0.2 per cent due to higher prices of bicycles of all types.

Inflation rate for the ‘furniture’ group declined by 0.1 per cent due to lower prices of foam and rubber mattress. However, the price of steel shutter gate moved up.

Inflation rate for the ‘other manufacturing’ group rose 0.4 per cent due to higher prices of playing cards, intraocular lens, football and cricket bat and carrom board.  However, the price of stringed musical instruments (incl santoor, guitars, etc) (4%), cricket ball and silver declined.

The rate of inflation based on WPI food index consisting of ‘food articles’ from `primary articles’ group and ‘food products’ from the `manufactured products’ group, having a weight of 24.38 per cent in WPI, increased from (-) 2.25 per cent in August 2018 to 0.14 per cent in September 2018.

Inflation rate for July, based on the final wholesale price index for ‘all commodities’, stood at 5.27 per cent compared to 5.09 per cent as reported earlier.