India’s wholesale price inflation eases further to 2.02% in June

Core inflation eased on the back of a 6.95 per cent fall in crude petroleum prices, even as the wholesale food price index rose 6.98 per cent in June provisional figures released on Monday showed. 

WPI inflation in the country stood at 5.68 per cent during the corresponding month of the previous year. Build-up of inflation rate in the financial year so far was 1.33 per cent compared to a buildup rate of 2.41 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, rose 1.4 per cent in June 2019. 

Within the primary articles group, inflation rate for the 'food articles' group rose 1.1 per cent due to higher prices of fish, pork, arhar, barley, peas/chawli, moong, fruits and vegetables, urad, beef, buffalo meat, masur, maize, mutton, condiments and spices, rajma and paddy. However, the prices of betel leaves, tea, ragi and poultry chicken declined.

Inflation rate for the 'non-food articles' group rose 0.7 per cent in June due to higher prices of raw rubber, fodder, groundnut seed, safflower (kardi seed), mesta, hides (raw), rape and mustard seed, soyabean, raw silk and cotton seed. However, the prices of floriculture, gingelly seed, copra (coconut), castor seed, gaur seed, niger seed, raw jute, linseed, industrial wood and sunflower declined.

Inflation rate for the 'minerals' group rose 14.5 per cent) for the month due to higher prices of copper concentrate, bauxite and manganese ore. However, the prices of limestone, lead concentrate, zinc concentrate and iron ore declined.

Inflation rate for 'crude petroleum and natural gas' group declined by 0.3 per cent in June due to lower price of crude petroleum. 

Inflation rate for the `fuel and power’ group, which has a weight of 13.15 per cent in the WPI index, declined by 1.3 per cent in June.

Within the group, inflation rate for the 'coal' group rose 0.3 per cent due to higher price of lignite.

Inflation for the `mineral oils' group declined by 2.2 per cent for the month due to lower prices of naphtha, furnace oil, bitumen, petrol and HSD. However, the price of kerosene, lube oils and LPG moved up.

Inflation rate for the `manufactured products’ group, which has a weight of 64.23 per cent in the WPI, remained unchanged at its previous month level.

Within the group, inflation rate for the 'food products' group rose 0.9 per cent due to higher prices of powder milk, molasses, buffalo meat, animal feeds, processed tea, gur, butter, rice (non-basmati), coffee powder (with chicory), processed fruits and vegetables, sooji (rawa), ghee, bagasse, cotton seed oil, condensed milk, processed meat, ice cream, instant coffee, wheat bran, maida and sunflower oil. However, the price of honey, macaroni, noodles, couscous and similar farinaceous products, chicken/duck, palm oil, health supplements, processed ready to eat food, copra oil, spices, groundnut oil, salt, processed fish, crustaceans and molluscs and products thereof, castor oil and sugar declined.

Inflation rate for the 'beverages' group rose 0.7 per cent due to higher prices of country liquor, rectified spirit, bottled mineral water and spirits.

Inflation rate for the 'tobacco products' group rose 2 per cent due to higher price of cigarette and other tobacco products.

Inflation rate for the 'textiles' group declined by 0.3 per cent due to lower prices of viscose yarn, synthetic yarn and texturised and twisted yarn. However, the prices of knitted and crocheted fabrics and other textiles moved up.

Inflation rate for the 'wearing apparel' group declined by 0.4 per cent due to lower prices of wearing apparel (woven), except fur apparel.

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

Inflation rate for the 'wood and products of wood and cork' group rose 0.2 per cent due to higher prices of wooden box/crate, wooden block, wooden panel and plywood block boards. However, the prices of lamination wooden sheets and veneer sheets declined.

Inflation rate for the 'paper and paper products' group declined by 0.6 per cent due to lower prices of paper bag (including craft paper bag), kraft paper, corrugated sheet box, corrugated paper board, paper carton/box, duplex paper, base paper, newsprint and paper for printing and writing. However, the prices of card board, map litho paper and laminated paper moved up.

Inflation rate for the 'printing and reproduction of recorded media ' group rose 0.2 per cent due to higher prices of printed form and schedule, journal/periodical and sticker plastic. However, the prices of printed books declined.

Inflation rate for the 'chemicals and chemical products' group declined by 0.3 per cent due to lower prices of mono ethyl glycol, sulphuric acid, aromatic chemicals, caustic soda (sodium hydroxide), organic surface active agent, carbon black, polyester film (metalised), polyethylene, phosphoric acid, alcohols, aniline (including PNA, ONA, OCPNA), acetic acid and its derivatives and polyester chips or polyethylene terepthalate (PET) chips, ammonia gas, plasticizer, ethyl acetate, sodium silicate, ammonium sulphate, organic chemicals, explosive and foundry chemical. However, the prices of face/body powder, nitrogenous fertilizer, menthol, creams and lotions for external application, camphor, tooth paste/tooth powder, dye stuff/dyes (including dye intermediates and pigments/colours), poly vinyl chloride (PVC), acrylic fibre, ammonia liquid, oleoresin, detergent cake, washing soap, amine and ammonium phosphate moved up.

Inflation rate for the 'rubber and plastics products' group declined by 0.1 per cent due to lower prices of plastic button, polyester film (non-metalized), polypropylene film, plastic tube (flexible/non-flexible), condoms, plastic tank, plastic bag, plastic bottle, rubber tread, thermocol, polythene film, plastic tape, 2/3 wheeler rubber tube and medium and heavy commercial vehicle tyres. However, the prices of plastic furniture and processed rubber, rubber crumb, rubber components and parts, elastic webbing and PVC fittings and other accessories moved up.

Inflation rate for the 'other non-metallic mineral products' group declined by 0.2 per cent due to lower prices of cement blocks (concrete), clinker, marble slab, porcelain sanitary ware, glass bottle, stone, chip and graphite rod. However, the prices of ceramic tiles (vitrified tiles), asbestos corrugated sheet, ordinary sheet glass, non-ceramic tiles, cement superfine and white cement moved up.

Inflation rate for the 'basic metals' group declined by 0.9 per cent due to lower prices of stainless steel, copper, lead, steel cables, zinc, steel (coated/not), alloy steel, ferrochrome, mild steel (MS), aluminum, silicomanganese, alloy steel wire rods, stainless steel coils, strips and sheets. However, the prices of steel rails, aluminum disk and circles, stainless steel tubes and steel forgings rough moved up.

Inflation rate for the 'fabricated metal products (except machinery and equipment)' group declined by 0.4 per cent due to lower prices of steel pipes, tubes and poles, forged steel rings, lock/padlock, hose pipes, hand tools and bolts, screws, nuts and nails of iron and steel. However, the prices of jigs and fixture and metal cutting tools and accessories moved up.

Inflation rate for the 'electrical equipment' group declined by 0.1 per cent due to lower prices of copper wire, PVC insulated cable, insulating and flexible wire and lead acid batteries for vehicles and other uses, rotor/magneto rotor assembly, aluminum wire, air coolers, insulator, fibre optic cables, aluminum/alloy conductor and rubber insulated cables. However, the prices of electric welding machine, solenoid valve, incandescent lamps and electrical relay/conductor, dry cells such as torch light batteries, ACSR conductors, electric switch and flourescent tube, electric filament type lamps, connector/plug/socket/holder-electric and fan moved up.

Inflation rate for the 'machinery and equipment' group rose 0.4 per cent due to higher prices of rice mill machinery, air filters, agriculture implements, centrifugal pumps, pressure vessels and tanks for fermentation and other food processing, sewing machines, cranes, chemical equipment and system and pump sets without motor. However, the prices of chillers, separator, filtration equipment, hydraulic pump, air gas compressor (including compressor for refrigerator), hydraulic equipment, mining, quarrying and metallurgical machinery/parts, roller mill (Raymond) and evaporator declined.

Inflation rate for the 'motor vehicles, trailers and semi-trailers' group rose 0.7 per cent due to higher prices of vehicle seats, axles, cylinder liners and passenger vehicles, shafts of all kinds, crankshaft, chassis of different vehicle types, chain, gear box and parts and minibus/bus. However, the prices of head lamp, steering gear control system, release valve, wheels/wheels and parts and radiators and coolers declined.

Inflation rate for the 'other transport equipment' group rose 1.8 per cent due to higher prices of motor cycles, auto rickshaws, tempo/matador and three wheelers.

Inflation rate for the 'furniture' group declined by 0.8 per cent due to lower prices of iron/steel and wooden furniture. However, the prices of foam and rubber mattress, hospital furniture and plastic fixtures moved up.

Inflation rate for the 'other manufacturing' group declined by 0.1 per cent due to lower prices of plastic moulded and other toys. However, the prices of table tennis table, playing cards, stringed musical instruments (incl. santoor, guitars, etc) and cricket ball moved up.

The rate of food inflation based on the WPI food index (consisting of food articles’ from primary articles group and ‘food product’ from the manufactured products group), which has a weight of 24.38 per cent in the WPI index, declined to 5.04 per cent in June from 5.10 per cent in May.

The final estimate of inflation rate for April 2019, based on revised wholesale price index for 'all commodities' (Base: 2011-12=100) stood at 3.24 per cent compared to 3.07 per cent (provisional) as reported on 14 May 2019.