Onion prices drive up WPI to 6.46% in September

The annual rate of inflation based on the wholesale price index (WPI) rose to 6.46 per cent in September 2013 from 6.10 per cent in the previous month, amidst rising prices of food, mainly onion whose prices jumped by 323 per cent, official data released by the government today showed.

WPI inflation stood at 8.07 per cent during the corresponding month of the previous year.

Build up of inflation so far during the financial year was 5.64 per cent compared to a build up of 4.84 per cent in the corresponding period of the previous year.

The official wholesale price index for 'all commodities' (base: 2004-05 = 100) for September 2013 rose by 1.2 per cent to 179.7 from 177.5 in the previous month, provisional figures released today showed.

The index for the `primary articles' group, which has a weight of 20.12 per cent in the WPI index, rose 1.5 per cent to 251.6 from 247.8  in the previous month.

The sharpest increase was in the prices of onion, which jumped by 323 per cent year-on-year in September. Vegetables in general rose by 89.37 per cent. Fruits too were costlier by 13.54 per cent year-on-year during the month.

Food inflation in September stood at 18.40 per cent year-on-year, with prices shooting up by 18.18 per cent in the previous month.

Prices of LPG (liquefied petroleum gas) and petrol rose 9 per cent and 9.64 per cent, respectively, on annual basis.

However, the prices of egg, meat, fish and manufactured food items like beverages and tobacco products declined in September 2013.

Overall, inflation in manufactured items showed a moderate increase of 2.03 per cent during the month.

The Reserve Bank is scheduled to unveil its second quarter review of monetary policy on October 29 and will have to take into account the rising inflation while announcing steps to boost economic activities.

The index for the 'food articles'  group rose by 0.8 per cent to 252.3 from 250.3 in the previous month due to higher price of egg, moong, wheat, gram, maize, barley and mutton and condiments and spices, tea, milk, rice, fruits and vegetables, fish-inland, arhar, pork and beef and buffalo meat. However, the price of poultry chicken, fish-marine and ragi declined.

The index for the 'non-food articles' group rose 2.0 per cent to 213.7 from 209.6 in the previous month due to higher price of guar seed, raw silk, copra (coconut), cotton seed, gingelly seed, soyabean, raw cotton and coir fibre, sunflower and niger seed, rape and mustard seed and linseed and castor seed.  However, the price of raw rubber, logs and timber and       safflower, groundnut seed and flowers declined.

The index for the 'minerals' group rose 6.4 per cent to 352.1 from 330.9 in the previous month due to higher price of copper ore, crude petroleum, dolomite, iron ore, steatite and limestone and zinc concentrate.  However, the price of barites, sillimanite, chromite and manganese ore declined.

The index for the `fuel and power' group, which has a weight of 14.91 per cent in the WPI index, rose by  2.6 per cent to 207.5 from 202.3 in the previous month due to higher price of light diesel oil, furnace oil, aviation turbine fuel, naphtha, petrol, lubricants, kerosene and bitumen, high speed diesel and LPG.

The index for the `manufactured products' group, which has a weight of 64.97 per cent in the WPI index, rose 0.7 per cent to 151.0 from 150.0 in the previous month.

Among manufactured products, the index for the 'food products' group rose 1.4 per cent to 170.0 from 167.7 in the previous month due to higher price of tea leaf (blended), processed prawn, copra oil, cotton seed oil and tea leaf (unblended), palm oil, groundnut oil, sunflower oil, gingelly oil and tea dust (blended) and rice bran oil, soyabean oil,  mixed spices, ghee, khandsari, maida, wheat flour (atta), oil cakes, gram powder (besan), tea dust (unblended) and gola (cattle feed). However, the price of bakery products and sugar declined.

The index for the 'beverages, tobacco and tobacco products ' group declined by 0.2 per cent to 181.2 from 181.6 in the previous month due to lower price of zarda and dried tobacco.  However, the price of soft drinks and carbonated water moved up.

The index for the 'textiles' group rose by 0.7 per cent to 138.3 from 137.3 in the previous month due to higher price of cotton yarn and woollen textiles, manmade fabric, manmade fibre and gunny and hessian cloth.

The index for the 'wood and wood products' group rose 0.7 per cent to 178.4 from 177.2 in the previous month due to higher price of timber / wooden planks and processed wood.

The index for the 'paper and paper products' group rose 0.4 per cent to 140.8 from 140.3 for the previous month due to higher price of books/ periodicals/ journals and corrugated sheet boxes, laminated paper, cream  laid woven paper, computer stationery and kraft  paper and bags.

However, the price of card board and maplitho paper declined.

The index for the 'leather and leather products' group rose 2.0 per cent to 145.1 from 142.3 for the previous month due to higher price of leather footwear. However, the price of leather garments and jackets declined.

The index for the 'rubber and plastic products' group rose 1.0 per cent to 145.8 from 144.4 in the previous month due to higher price of plastic products and tubes.

The index for the 'chemicals and chemical products' group rose 0.7 per cent to 148.7 from 147.6 in the previous month due to higher price of non-cyclic compound, ammonium sulphate,  synthetic resin, polymers and pesticides and adhesive and  gum, safety  matches/ match box, hair / body oils, dye & dye intermediates, photographic goods, thermocol, basic inorganic chemicals and pigment & pigment intermediates. 

However, the price of vitamins and washing powder, distemper, washing soap and organic manure declined.

The index for the 'non-metallic mineral products' group rose 0.2 per cent to 164.7 from 164.3 in the previous month due higher price of marbles.

However, the price of white cement declined.

The index for the 'basic metals, alloys and metal products' group rose 0.2 per cent to 163.1 from 162.7 in the previous month due to higher price of ferro silicon, silver, metal containers and gold and gold ornaments, sheets and steel pipes and tubes, aluminium and iron and steel wire.

However, the price of ferro chrome and steel rods, rounds, sponge iron and steel castings declined.

The index for the 'machinery and machine tools' group rose 0.2 per cent to 131.1 from 130.8 in the previous month due to higher price of battery dry cells TV accessories, lamps, compressors, electronic PCB /micro circuit and fibre optic cable and capacitors, batteries, control equipments, computers, machine tools and air conditioner and refrigerators.

However, the price of loader, ball / roller bearing and plastic machinery, washing / laundry machines and electric motors declined.

The index for the 'transport, equipment and parts' group rose 0.3 per cent to 134.1 from 133.7 in the previous month due to higher price of motor cycle / scooter / moped and shafts of all kinds.

The rate of inflation based on final index for July stood at 5.85 per cent, against the 5.79 per cent earlier estimated, as the final wholesale price index for 'all commodities' stood at 175.5 against 175.4 reported earlier.