India’s wholesale price inflation eases marginally to 1.08%

The annual WPI-rate of inflation, with its base of 2011-12=100 stood 2.02 per cent (provisional) in the previous month and 5.27 per cent during the corresponding month of the previous year. 

Build-up of inflation rate in the financial year so far was 1.08 per cent compared to a build up rate of 3.1 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 by 0.5 per cent in July 2019 compared to the previous month.

The index for 'food articles' group rose by 1.3 per cent due to higher prices of fruits and vegetables, egg, maize,  jowar, pork, beef and buffalo meat, wheat, condiments and spices, bajra, barley, moong, paddy, peas/chawali, ragi and arhar. However, the prices of fish, poultry chicken, urad and betel leaves declined.

Inflation rate for the `non-food articles' group rose 0.1 per cent due to higher prices of groundnut seed, gingelly seed (sesamum), cotton seed, hides (raw), skins (raw), floriculture, fodder, raw rubber and castor seed. However, the prices of soyabean, raw jute, mesta, sunflower, niger seed, raw cotton, gaur seed, safflower (kardi seed) and linseed declined.

Inflation rate for the 'minerals' group declined by 2.9 per cent due to lower prices of copper concentrate, iron ore, chromite, lead concentrate and manganese ore. However, the prices of bauxite and limestone moved up.

Inflation rate for the 'crude petroleum and natural gas' group declined by 6.1 per cent due to lower prices of crude petroleum and natural gas.

Inflation rate for the `fuel and power’ group, which has a weight of 13.15 per cent in the wholesale price index, declined by 1.5 per cent in July 2019.

Within the group, inflation rate for the 'mineral oils' group declined by 3.1 per cent due to lower prices of LPG, ATF, naphtha, petroleum coke, HSD, kerosene, furnace oil and petrol. However, the price of bitumen moved up.

Inflation rate for the 'electricity' group rose 0.9 per cent due to higher 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 July 2019.

Within the group, inflation rate for the `food products' group rose 0.4 per cent due to higher prices of molasses, processed ready-to-eat food, maida, gur, rice bran oil, sooji (rawa ), powder milk, prepared animal feeds, instant coffee, cotton seed oil, spices (including mixed spices), bakery products, ghee, wheat flour (atta), honey, health supplements, chicken/duck, dressed (fresh/frozen), mustard oil, starches and starch products, sunflower oil and salt. However, the prices of coffee powder with chicory, ice cream, copra oil and processing and preserving of fruit and vegetables and palm oil, other meats, preserved/processed, sugar, manufacture of macaroni, noodles, couscous and similar farinaceous products, wheat bran and soyabean oil declined.

Inflation rate for the 'beverages' group declined by 0.1 per cent due to lower prices of aerated drinks/soft drinks (incl. soft drink concentrates) and spirits. However, the prices of beer, country liquor and rectified spirit moved up.

Inflation rate for 'tobacco products' group declined by 1 per cent due to lower prices of cigarette and other tobacco products.

Inflation rate for the 'wearing apparel' group declined by 1.2 per cent due to lower prices of wearing apparel (woven), except fur apparel and knitted and crocheted apparel.

Inflation rate for the 'leather and related products' group declined by 0.8 per cent due to lower prices of leather shoe and harness, saddles and other related items, belt and other articles of leather. However, the prices of travel goods, handbags, office bags, etc moved up.

Inflation rate for the 'manufacture of wood and wood products and cork ' group declined by 0.3 per cent due to lower prices of wooden splint, lamination wooden sheets/veneer sheets and wood cuttings (processed/sized). However, the prices of plywood block boards moved up.

Inflation rate for the 'paper and paper products' group declined by 0.3 per cent due to lower prices of bristle paper board, base paper, laminated plastic sheet, newsprint, paper for printing and writing, paper carton/box and tissue paper. However, the prices of corrugated sheet box, press board, hard board and laminated paper moved up.

Inflation rate for the 'printing and reproduction of recorded media ' group rose by 1 per cent due to higher price of sticker plastic, printed books, printed form and schedule and journal/periodical . However, the price of hologram (3D) declined.

Inflation rate for the 'chemicals and chemical products' group declined by 0.4 per cent due to lower prices of menthol, caustic soda (sodium hydroxide), tooth paste/tooth powder and carbon black, nitric acid, acetic acid and its derivatives, plasticizer, amine, organic solvent, sulphuric acid, ammonia liquid, phthalic anhydride, ammonia gas, camphor, poly propylene (PP), alkyl benzene, ethylene oxide, di-ammonium phosphate, and shampoo, polyester chips or polyethylene terepthalate (PET) chips, ethyl acetate, ammonium nitrate, nitrogenous fertilizer, others, polyethylene, toilet soap, organic surface active agent, superphospate/phosphatic fertilizer, others, hydrogen peroxide, dye stuff/dyes (incl. dye intermediates and pigments/colours), aromatic chemicals, alcohols, viscose staple fibre, gelatine, organic chemicals, other inorganic chemicals, foundry chemical, explosive and polyester film(metalized). However, the prices of catalysts, mosquito coil, acrylic fibre, sodium silicate, agro chemical formulation, liquid air and other gaseous products, rubber chemicals, insecticide and pesticide, poly vinyl chloride (PVC), varnish (all types), urea and ammonium sulphate moved up.

Inflation rate for the 'pharmaceuticals, medicinal chemical and botanical products' group rose 0.6 per cent due to higher prices of plastic capsules, sulpha drugs, antidiabetic drug (excluding insulin, ie, tolbutam), ayurvedic medicaments, anti inflammatory preparation, simvastatin and cotton wool (medicinal). However, the prices of vials/ampoule, glass, empty or filled, anti-retroviral drugs for HIV treatment and antipyretic, analgesic, anti-inflammatory formulations declined.

Inflation rate for the 'rubber and plastics products' group rose 0.1 per cent due to higher prices of tooth brush, plastic furniture, plastic button and PVC fittings and other accessories, solid rubber tyres/wheels, rubber moulded goods, rubber tread, condoms, cycle/cycle rickshaw tyre and plastic tape. However, the price of rubberized dipped fabric, polyester film (non-metalized), rubber crumb, plastic tube (flexible/non-flexible), processed rubber and polypropylene film declined.

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

Inflation rate for the 'basic metals' group declined by 1.3 per cent due to lower prices of stainless steel pencil ingots/billets/slabs, sponge iron/direct reduced iron (DRI), ferrochrome, aluminium disk and circles, MS pencil ingots and angles, channels, sections, steel (coated/not), ferromanganese and alloy steel wire rods, cold rolled coils and sheets (including narrow strip), MS wire rods, MS bright bars, hot rolled coils and sheets (including narrow strip), copper metal/copper rings, ferrosilicon, silicomanganese and mild steel blooms, rails, pig iron, GP/GC sheet, brass metal/sheet/coils, alloy steel castings, aluminium castings, stainless steel bars and rods (including flats) and stainless steel tubes. However, the prices of MS castings, steel forgings (rough), steel cables and cast iron castings moved up.

Inflation rate for the 'fabricated metal products (except machinery and equipment)’ group declined by 1.4 per cent due to lower prices of cylinders, electrical stamping (laminated or otherwise), metal cutting tools and accessories, copper bolts, screws, nuts and boilers, aluminium utensils, steel structures, steel drums and barrels, steel container and jigs and fixture. However, the prices of hand tools, iron/steel cap, sanitary fittings of iron and steel and steel pipes, tubes and poles moved up.

Inflation rate for the 'electrical equipment' group declined by 0.5 per cent due to lower prices of electric switch, electric switch gear control/starter, connector/plug/socket/holder-electric, transformer, air coolers and electrical resistors (except heating resistors), rotor/magneto rotor assembly, jelly filled cables, electric and other meters, copper wire and safety fuse. However, the prices of electric accumulators, PVC insulated cable and ACSR conductors, incandescent lamps, fan, fibre optic cables and insulator moved up.

Inflation rate for the 'machinery and equipment' group rose 0.4 per cent due to higher prices of air or vacuum pump, conveyors (non-roller type), threshers, pump sets without motor, precision machinery equipment/form tools and air filters and moulding machine, pharmaceutical machinery, sewing machines, roller and ball bearings, motor starter, manufacture of bearings, gears, gearing and driving elements and agricultural tractors. However, the prices of deep freezers, air gas compressor (including compressor for refrigerator), cranes, road roller, hydraulic pump, soil preparation and cultivation machinery (other than tractors), harvesters, lathes and hydraulic equipment declined.

Inflation rate for the 'motor vehicles, trailers and semi-trailers' group declined by 0.1 per cent due to lower prices of seat for motor vehicles, cylinder liners, piston ring/piston and compressor, brake pad/brake liner/brake block/brake rubber, others, gear box and parts, crankshaft and release valve. However, the prices of chassis of different vehicle types, body (for commercial motor vehicles), engine, axles of motor vehicles and filter element moved up.

Inflation rate for the 'other transport equipment' group declined by 0.4 per cent due to lower prices of diesel/electric locomotive and motor cycles. However, the price of wagons moved up.

Inflation rate for the 'furniture' group rose 0.2 per cent due to higher prices of steel shutter gate. However, the price of hospital furniture declined.

Inflation rate for the 'other manufacturing' group rose 2 per cent due to higher prices of silver, gold and gold ornaments, cricket ball and football. However, the prices of plastic moulded-others toys and stringed musical instruments (incl. santoor, guitars, etc) declined.

The rate of inflation based on WPI Food Index consisting of ‘food articles’ from both primary articles and manufactured products groups declined to 4.54 per cent in July 2019 from 5.04 per cent in the previous month.

The final inflation rate for May 2019, based on the revised wholesale price index for 'all commodities' stood at 2.79 per4 cent compared to 2.45 per cent  (provisional) as reported on 14 June 2019.