India’s wholesale price inflation falls to 3.8% in December

Build-up of inflation so far during the financial stood at 3.27 per cent compared to a build-up of 2.21 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 1.8 per cent.

Within the primary articles group, inflation rate for the ‘food articles’ group declined by 1.4 per cent due to lower prices of fruits and vegetables, peas/chawali, condiments and spices and paddy. However, the price of betel leaves, arhar, urad, gram, masur, rajma, maize, jowar, bajra, ragi, coffee, tea, poultry chicken, fish and  pork moved up.

Inflation rate for the ‘non-food articles’ group declined by 0.1 per cent due to lower prices of guar seed, raw cotton, castor seed, groundnut seed, rape and mustard seed, raw rubber and raw silk. However, the prices of gingelly seed, floriculture and mesta, copra (coconut), safflower (kardi seed), soyabeen, linseed, sunflower, cotton seed, raw jute, skins (raw), coir fibre, raw wool, hides (raw) moved up.

Inflation rate for the ‘minerals’ group rose 7.7 per cent due to higher prices of garnet, copper concentrate, manganese ore, iron ore, phosphorite, chromite and bauxite . However, the prices of zinc concentrate and sillimanite declined.

Inflation rate for the 'crude petroleum and natural gas' group declined by 11.9 per cent 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 wholesale price index, declined by 5.9 per cent in December 2018.

Within the group, inflation rate for the ‘mineral oils’ group declined by 10.2 per cent due to lower prices of naphtha, furnace oil, LPG, ATF, petrol and bitumen, HSD, petroleum coke and kerosene.

Inflation rate for the `manufactured products’ group, which has a weight of 64.23 per cent in the wholesale price index, declined by 0.4 per cent in December 2018.

Within the group, inflation rate for the ‘manufactured food products’ group declined by 1.0 per cent due to lower prices of molasses, gur, honey, coffee powder with chicory, rice bran oil, palm oil, powdered milk, processed ready to eat food, cotton seed oil, sugar, butter, other meats [preserved/processed], buffalo meat [fresh/frozen], castor oil, manufacture of prepared animal feeds, instant coffee, vanaspati, ghee, sooji (rawa), mustard oil, groundnut oil, processed tea and manufacture of bakery products. However, the prices of wheat bran, starches and starch products, health supplements, gram powder (besan), chicken/duck [dressed-fresh/frozen], copra oil, bagasse, wheat flour (atta), macaroni, noodles, couscous and similar farinaceous products moved up.

Inflation rate for the ‘manufacture of beverages’ group rose 0.2 per cent due to higher prices of aerated drinks/soft drinks (including soft drink concentrates).  However, the price of bottled mineral water and beer declined.

Inflation rate for the ‘manufactured textiles’ group rose 0.1 per cent due to higher prices of made-up textile articles (except apparel) and other textiles. However, the prices of synthetic yarn, texturised and twisted yarn and manufacture of cordage, rope, twine and netting declined.

Inflation rate for the ‘wearing apparel’ group rose 0.2 per cent due to higher prices of leather garments (including jackets and shawls and scarves).

Inflation rate for the ‘manufactured leather and related products’ group declined by 0.3 per cent due to lower prices of vegetable tanned leather, belt and other articles of leather and chrome tanned leather. However, the price of canvas shoes moved up.

Inflation rate for the ‘wood and of products of wood and cork’ group rose 0.3 per cent due to higher prices of timber/wooden plank (sawn/resawn), wooden box/crate and wooden block-compressed or not and lamination wooden sheets/veneer sheets. However, the price of particle boards and wood cutting (processed/sized) declined

Inflation rate for the ‘paper and paper products’ group declined by 0.1 per cent due to lower price of paper bag, including craft paper bag, kraft paper, base paper, laminated paper and newsprint, bristle paper board, duplex paper, hard board and poster paper. However, the price of pulp board, paper carton/box and corrugated sheet box, paper for printing and writing and corrugated paper board moved up.

Inflation rate for the ‘printing and reproduction of recorded media’ group rose 0.7 per cent due to higher prices of journals and periodicals. However, the prices of hologram, printed labels/posters/calendars and sticker plastic declined.

Inflation rate for the ‘chemicals and chemical products’ group declined by 0.7 per cent due to lower prices of mono ethyl glycol, organic solvent, acetic acid and its derivatives, hydrogen peroxide, menthol, alkyl benzene, poly propylene (pp), camphor, phthalic anhydride, plasticiser, ethyl acetate, printing ink, creams and lotions for external application, hair oil/body oil, aniline (including PNA, ONA, OCPNA), acrylic fibre, carbon black, ethylene oxide and alcohols, ammonium sulphate, polystyrene [expandable], varnish (all types), epoxy [liquid], fatty acid, insecticide and pesticide and mosquito coil, polyethylene, phosphoric acid, polyester fibre fabric, catalysts, caustic soda (sodium hydroxide), adhesive tape (non-medicinal), shampoo, rubber chemicals, sulphuric acid, oleoresin, perfume/scent and polyester chips or polyethylene terepthalate (PET) chips. However, the price of ammonia gas, powder coating material, ammonium nitrate, soda ash/washing soda and polyester film(metalised), safety matches, ammonium phosphate, ammonia liquid, toilet soap, XLPE compound, other inorganic chemicals, superphospate /phosphatic fertiliser, poly vinyl chloride (PVC), fungicide [liquid], mixed fertilizer, gelatine, organic chemicals, other petrochemical intermediates, amine and liquid air and other gaseous products moved up.

Inflation rate for the ‘pharmaceuticals, medicinal chemical and botanical products’ group declined by 0.2 per cent due to lower prices of vials/ampoule, glass, empty or filled and anti-malarial drugs, antioxidants and plastic capsules. However, the prices of anti-inflammatory preparations, anti-retroviral drugs for HIV treatment, sulpha drugs and anti-allergic drugs moved up.

Inflation rate for the ‘rubber and plastics products’ group declined by 0.2 per cent due to lower prices of plastic button, polypropylene film, plastic bag and processed rubber, rubber components and parts, plastic film, plastic tube (flexible/non-flexible), plastic components and plastic tank, PVC fittings and other accessories, plastic furniture, polythene film, elastic webbing, rubberised dipped fabric, motor car tyre and thermocol. However, the prices of plastic box/container, medium and heavy commercial vehicle tyre and rubber tread and solid rubber tyres/wheels, rubber moulded goods, plastic bottle, conveyer belt (fibre based) and acrylic/plastic sheet moved up.

Inflation rate for the ‘other non-metallic mineral products’ group declined by 0.3 per cent due to lower prices of graphite rod, ceramic tiles (vitrified tiles), marble slab, clinker, white cement, cement superfine, granite, fibre glass (including sheet), asbestos corrugated sheet and glass bottle. However, the prices of ordinary sheet glass and toughened glass, plain bricks, porcelain sanitary ware, poles and posts of concrete and ordinary portland cement moved up.

Inflation rate for the ‘basic metals’ group declined by 1.2 per cent due to lower prices of angles, channels, sections, steel (coated/not), alloy steel wire rods, sponge iron/direct reduced iron (DRI)and mild steel (MS) blooms, hot rolled (HR) coils and sheets (including narrow strip, GP/GC sheet, copper metal/copper rings, ferrochrome, aluminium disk and circles), aluminium shapes (bars/rods/flats), brass metal/sheet/coils, MS pencil ingots, MS wire rods, MS bright bars, pig iron and aluminium powder and aluminium ingot, aluminium alloys, steel cables, cold rolled (CR) coils and sheets, including narrow strip, ferromanganese, stainless steel pencil ingots/billets/slabs, alloy steel castings, stainless steel tubes, copper shapes- bars/rods/plates/strips and aluminium castings. However, the prices of steel forgings-rough, stainless steel coils, strips and sheets, MS castings and cast iron (castings) moved up.

Inflationrate for the ‘fabricated metal products, except machinery and equipment’ group declined by 0.1 per cent due to lower prices of boilers, steel doors, cylinders, copper bolts, screws, nuts and bolts, screws, nuts and nails of iron and steel, aluminium utensils, hose pipes in set or otherwise and jigs and fixture. However, the prices of forged steel rings, hand tools and electrical stamping-laminated or otherwise and pressure cooker, steel drums and barrels, iron/steel cap, steel container and stainless steel utensils moved up.

Inflation rate for the ‘computer, electronic and optical products’ group declined by 0.6 per cent due to lower prices of sunglasses, colour TV, electronic printed circuit board (PCB)/micro circuit and meter (non-electrical). However, the prices of electro-diagnostic apparatus used in medical, surgical, dental or veterinary sciences and scientific time keeping devices moved up.

Inflation rate for the ‘electrical equipment’ group declined by 0.1 per cent due to lower prices of jelly filled cables, aluminium wire, refrigerators and washing machines/laundry machines, lead acid batteries for vehicles and other uses, transformer, electrical relay/conductor, aluminium/alloy conductor, generator parts and copper wire. However, the prices of solenoid valve, fibre optic cables, electric mixers/grinders/food processors and connector/plug/socket/holder-electric and insulator, generators and alternators and air coolers moved up.

Inflation rate for the ‘manufacture of motor vehicles, trailers and semi-trailers’ group declined by 0.8 per cent due to lower prices of seat for motor vehicles, engine and light, medium and heavy commercial vehicles, passenger vehicles and cylinder liners. However, the prices of crankshaft, axles of motor vehicles and shafts of all kinds, minibus/bus, filter element and release valve moved up.

Inflation rate for the ‘other transport equipment’ group rose 0.3 per cent due to higher prices of motor cycles. However, scooter prices declined.

Inflation rate for the ‘furniture’ group declined by 0.7 per cent due to lower prices of foam and rubber mattress and iron/steel furniture. However, the price of plastic fixtures moved up.

Inflation rate for the 'other manufacturing' group rose 7.0 per cent due to higher prices of gold and gold ornaments, football, silver, plastic moulded (other) toys and cricket bat. However, the prices of stringed musical instruments (including santoor, guitars, etc) and playing cards declined.

Inflation rate for the food products group, comprising both primary and manufactured products, which has a weight of 24.38 per cent in the WPI, increased from (-) 1.96 per cent in November 2018 to 0.07 per cent in December 2018.

The final wholesale price inflation for October 2018, based on the revisedwholesale price index for ‘all commodities’ (Base: 2011-12=100) stood at 5.54 per cent compared to 5.28 per cent (provisional) as reported on 14 November 2018.