India’s wholesale price inflation falls to 0.16% in October

Consumer price inflation in the country, on the other hand, showed a rising trend -  steadily increasing from 3.15 per cent in July as opposed to the wholesale price inflation that has steadily been declined till October.

The annual rate of inflation, based on the wholesale price index (WPI), stood at 0.16 year-on-year in October 2019 against 0.33 per cent in the previous month, provisional figures released by the commerce and industry ministry showed.

The annual inflation, based on monthly wholesale price index (WPI), was at 5.54 per cent in October 2018.

Build-up of inflation rate so far in the financial year stood at 1.92 per cent compared to a build-up rate of 4.90 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), rose 2.1 per cent in October 2019. 

Among primary articles, inflation rate for the 'food articles' group rose 3.2 per cent in October 2019 due to higher prices of fruits and vegetables, egg and pork, tea, wheat, condiments and spices, fish, poultry chicken, urad, rajma, gram and moong. However, the prices of bajra, ragi and maize and barley declined.

Inflation rate for the 'non-food articles' group declined by 0.3 per cent in October due to lower prices of castor seed, raw rubber, gaur seed, raw cotton, skins (raw), soyabean, hides (raw), groundnut seed and coir fibre. However, the prices of floriculture, raw silk, niger seed, safflower (kardi seed), gingelly seed (sesamum), raw jute, sunflower and rape and mustard seed moved up.

Inflation rate for the 'minerals' group declined by 3.2 per cent due to lower prices of copper concentrate, limestone, iron ore, manganese ore and chromite. However, the prices of lead concentrate moved up.

Inflation rate for the 'crude petroleum and natural gas' group declined by 0.7 percent due to lower prices of natural gas. However, the price of crude petroleum moved up.

Inflation rate for the `fuel and power’ group, which has a weight of 13.15 per cent in the wholesale price index group, rose 1.9 percent in October 2019.

Inflationrat4 for the 'mineral oils' group rose 2.8 per cent in October 2019 due to higher prices of furnace oil, bitumen, naphtha, ATF and kerosene, petrol, HSD and LPG.

Inflation rate for the 'electricity' group rose 1.6 per cent in October 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, remained unchanged at its previous month’s level.

Among manufactured products group, inflation rate for the 'food products' group rose by 0.7 per cent due to higher prices of honey, milk powder, palm oil, salt, copra oil, chicken/duck, dressed (fresh/frozen), mustard oil, wheat flour (atta), spices (including mixed spices), cocoa, chocolate, sugar confectionery, health supplements, ice cream, maida, soyabean oil, rice bran oil, processed and preserved fish, crustaceans and molluscs and products thereof, sooji (rawa), gur, bakery products and butter. However, the prices of castor oil, molasses, coffee powder with chicory, processed tea and processed ready-to-eat food and instant coffee declined.

Inflation rate for the 'beverages' group declined by 0.6 per cent due to lower prices of aerated drinks/soft drinks (incl soft drink concentrates). However, the price of bottled mineral water moved up.

Inflation rate for the 'tobacco products' group rose 0.8 per cent due to higher prices of other tobacco products.

Inflation rate for the 'textiles' group declined by 0.2 per cent due to lower prices of synthetic yarn, made-up textile articles (except apparel), cotton yarn, texturised and twisted yarn and knitted and crocheted fabrics. However, the prices of cordage, rope, twine and netting, weaving and finishing of textiles moved up.

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

Inflation rate for the 'leather and related products' group declined by 0.2 per cent due to lower prices of chrome tanned leather and plastic/PVC chappals. However, the prices of belt and other articles of leather, harness, saddles and other related items, waterproof footwear, vegetable tanned leather and leather shoe moved up.

Inflation rate for the `wood and products of wood and cork ' group rose by 0.3 per cent due to higher prices of wooden splint, wooden box/crate and plywood block boards. However, the prices of wooden block (compressed or not) and lamination wooden sheets/veneer sheets declined.

Inflation rate for the 'paper and paper products' group declined by 0.5 per cent due to lower prices of tissue paper, kraft paper, paper for printing and writing, base paper, laminated paper, bristle paper board, poster paper, newsprint, pulp board and corrugated paper board. However, the prices of paper bag (including craft paper bag) and corrugated sheet box moved up.

Inflation rate for the 'printing and reproduction of recorded media ' group rose 2.5 per cent due to higher prices of journal/periodical, printed form and schedule and sticker plastic. However, the price of newspaper declined.

Inflation rate for the 'chemicals and chemical products' group declined by 0.4 per cent due to lower prices of caustic soda (sodium hydroxide), camphor, carbon black, sulphuric acid and poly propylene (PP), amine, ammonium sulphate, powder coating material, other inorganic chemicals, adhesive tape (non-medicinal), mono ethyl glycol, aromatic chemicals, phosphoric acid, soda ash/washing soda, organic chemicals, acrylic fibre, polyester chips or polyethylene terepthalate (PET) chips, di ammonium phosphate, menthol, fatty acid, polyethylene, additive, shampoo, polyester film (metalised, polyester fibre fabric, epoxy, liquid, polystyrene, expandable and organic surface active agent. However, the prices of gelatine, agro chemical formulation, oleoresin, ethyl acetate, tooth paste/tooth powder, adhesive (excluding gum), hydrogen peroxide, ammonia gas, dye stuff/dyes incl. dye intermediates and pigments/colours, catalysts, sodium silicate, alkyl benzene, acetic acid and its derivatives, ethylene oxide, ammonium phosphate, insecticide and pesticide, explosive, organic solvent, alcohols and ammonia liquid moved up.

Inflation rate for the 'pharmaceuticals, medicinal chemical and botanical products' group rose 0.2 per cent due to higher prices of cotton wool (medicinal) and API & formulations of vitamins. However, the prices of anti-retroviral drugs for HIV treatment, vials/ampoule, glass, empty or filled and antipyretic, analgesic, anti-inflammatory formulations and anti-cancer drugs and vaccine for polio declined.

Inflation rate for the 'rubber and plastics products' group rose 0.2 percent due to higher prices of processed rubber, plastic bag, rubber components and parts, plastic box/container, plastic components, conveyer belt (fibre based), plastic film and condoms. However, the prices of tooth brush, elastic webbing, plastic bottle and polythene film, medium and heavy commercial vehicle tyre, rubber cloth/sheet, 2/3 wheeler rubber tube, tractor tyre, thermocol, plastic tank, plastic furniture, polyester film (non-metalised), rubber crumb, cycle/cycle rickshaw tyre, solid rubber tyres/wheels, rubber tread and plastic tape declined.

Inflation rate for the 'other non-metallic mineral products' group declined by 0.9 per cent due to lower prices of ordinary sheet glass, glass bottle, graphite rod, electric insulating material, toughened glass, poles and posts of concrete, stone, chip, granite and plain bricks. However, the prices of cement (superfine), cement blocks (concrete), porcelain sanitary ware, railway sleeper, non ceramic tiles, white cement and fibre glass (incl. sheet) moved up.

Inflation rate for the 'basic metals' group declined by 1.1 per cent due to lower prices of stainless steel pencil ingots/billets/slabs, ferromanganese and other ferro alloys, silicomanganese, hot rolled (HR) coils and sheets, including narrow strip, brass metal/sheet/coils and GP/GC sheet, steel cables, cold rolled (CR) coils and sheets,  (including narrow strip), ferrochrome, aluminium alloys, pig iron, alloy steel wire rods, angles, channels, sections, steel (coated/not), aluminium shapes - bars/rods/flats, MS bright bars and steel forgings (rough, aluminium ingot, rails), zinc metal/zinc blocks, mild steel (MS) blooms, ferrosilicon, copper metal/copper rings and galvanized iron pipes. However, the price of alloy steel castings and MS pencil ingots, lead ingots, bars, blocks, plates and MS castings moved up.

Inflation rate for the 'fabricated metal products, except machinery and equipment' group declined by 0.1 per cent due to lower prices of aluminium utensils, forged steel rings, steel drums and barrels, hand tools, bracket, metal cutting tools and accessories, stainless steel tank and steel container, pressure cooker, electrical stamping (laminated or otherwise), iron/steel cap and jigs and fixture. However, the prices of sanitary fittings of iron and steel, cylinders, iron/steel hinges and boilers moved up.

Inflation rate for the 'computer, electronic and optical products' group declined by 0.3 per cent due to lower prices of colour TV, watch and air conditioner. However, the prices of electro-diagnostic apparatus used in medical, surgical, dental or veterinary sciences, meter (non-electrical) and electronic printed circuit board (PCB)/micro circuit moved up.

Inflation rate for the 'electrical equipment' group rose 0.6 percent due to higher prices of electric accumulators, jelly filled cables, refrigerators, fibre optic cables, transformer, ACSR conductors, domestic gas stove, incandescent lamps, insulating and flexible wire, connector/plug/socket/holder-electric, electrical resistors (except heating resistors), electric switch, flourescent tube and copper wire. However, the prices of electric welding machine, electric switch gear control/starter, solenoid valve, rotor/magneto rotor assembly, electric mixers/grinders/food processors, insulator, PVC insulated cable, aluminium/alloy conductor, aluminium wire and electric filament type lamps declined.

Inflation rate for the 'machinery and equipment' group declined by 1.0 per cent due to lower prices of air filters, machinery used in the milling industry, air or vacuum pump, cranes, precision machinery equipment/form tools, pharmaceutical machinery , excavator, sugar machinery, open-end spinning machinery, chemical equipment and system, dumper, injection pump and industrial valve. However, the prices of moulding machine, water purifier, loader, sewing machines, air gas compressor, including compressor for refrigerator and threshers, moved up.

Inflation rate for the 'motor vehicles, trailers and semi-trailers' group rose 1.5 per cent due to higher prices of seat for motor vehicles, engine, crankshaft and silencer and damper, chain, wheels/wheels and parts, shafts of all kinds, passenger vehicles, chassis of different vehicle types and minibus/bus. However, the prices of cylinder liners, brake pad/brake liner/brake block/brake rubber and others declined.

Inflation rate for the 'furniture' group declined by 1.1 per cent due to lower prices of foam and rubber mattress, plastic fixtures and hospital furniture.

Inflation rate for the 'other manufacturing' group rose by 2.5 per cent due to higher prices of non-mechanical toys, gold and gold ornaments, silver and table tennis table. However, the prices of stringed musical instruments (incl santoor, guitars, etc), playing cards, cricket ball and cricket bat 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 having a weight of 24.38 per cent in the wholesale price index, increased from 5.98 per cent in September to 7.65 per cent in October 2019.

The final wholesale price index for August 2019 based on the final index stood at 1.17 per cent compared to the provisional estimate of 1.08 per cent reported on 16 September 2019.