Wholesale price inflation a tad lower at 3.15% in November

The annual rate of inflation based on the broader wholesale price index (WPI) showed a modest fall to 3.15 per cent in November against 3.39 per cent in the previous month, helped in large measure by falling food prices.

The annual rate of inflation, based on monthly WPI, stood at 3.15 per cent in November 2016 against 3.39 per cent for the previous month and (-) 2.04 per cent during the corresponding month of the previous year, provisional data released by the Central Statistics Office (CSO) showed.

Build-up of inflation rate in the financial year so far (April-November 2016-17) was 4.45 per cent compared to a build-up of 0.80 per cent in the corresponding period of the previous year.

Inflation rate for the `primary articles' group, which has a weight of 20.12 per cent in the wholesale price index, declined by 0.9 per cent in November 2016.

Among the primary articles group, inflation rate for the 'food articles' group declined by 1.0 per cent due to lower prices of fruits and vegetables, pulses such as moong, masur, urad and arhar, cereals like maize as well as condiments and spices. However, the prices of wheat, ragi, barley, bajra, jowar, gram, coffee, tea poultry chicken, fish and egg moved up.

Inflation rate for the 'non-food articles' group declined by 0.8 per cent due to lower prices of sunflower, groundnut seed, soyabean, linseed, gingelly seed, guar seed, flowers, raw cotton and mesta, coir fibre, raw wool and fodder. However, the prices of raw rubber, sugarcane, raw silk, raw jute,castor seed and copra (coconut), safflower (kardi seed) and rape and mustard seed moved up.

Inflation rate for the 'minerals' group declined by 1.7 per cent due to lower prices of magnesite, copper ore, chromite and phosphorite. However, the prices of manganese ore, limestone, iron ore and zinc concentrate moved up.

Inflation rate for the 'fuel and power' group, which has a weight of 14.91 per cent in the WPI, rose 1.8 per cent in November due to higher prices of aviation turbine fuel, bitumen, furnace oil and high speed diesel, kerosene and LPG and petrol.

Inflation rate for the 'manufactured products' group, which has the maximum weight of 64.97 per cent in the WPI, rose 0.3 per cent in November.

Among manufactured products, the inflation rate for the 'food products' group rose 0.5 per cent in November due to higher price of wheat flour, maida, sooji (rawa), mixed spices, sugar, gola (cattle feed), copra oil and soyabean oil. 

However, the price of oil cakes, groundnut oil and sunflower oil, guar and tea – dust, leaf and blended - processed prawn and bakery products declined.

Inflation rate for the 'beverages, tobacco and tobacco products' group declined by 0.1 per cent due to lower price of dried tobacco. However, the price of rectified spirit and beer moved up.

Inflation rate for the 'textiles' group rose 0.1 per cent due to higher price of tyre cord fabric, gunny and hessian cloth and cotton fabric. However, the price of      jute sacking cloth, jute yarn and jute sacking bag declined.

Inflation rate for the 'wood and wood products' group declined by 1.6 per cent due to lower price of plywood and fibre board.

Inflation rate for the 'paper and paper products' group rose 0.3 per cent due to higher price of corrugated sheet boxes and cream-laid woven paper and printing and writing paper. However, the price of paper cartons/boxes and paper rolls, newsprint and paper pulp declined.

Inflation rate for the 'leather and leather products' group rose 1.1 per cent due to higher price of leather footwear.

Inflation rate for the 'rubber and plastic products' group declined by 0.1 per cent due to lower prices of rubber transmission belt, synthetic rubber compound and rubber components and parts, tractor tyre, other rubber tubes, plastic components / accessories, polyester film and reclaimed rubber. However, the prices of HDPE bag and plastic / LDPE / polythene bag, plastic / PVC chappals, plastic rolls and HDPE woven sacks moved up.

Inflation rate for the 'chemicals and chemical products' group rose 0.1 per cent due to higher price of thermocol, hair / body oils and toilet soap, basic organic chemicals, non-cyclic compound, safety matches / match box, ammonium sulphate, washing soap and dye and dye intermediates. However, the price of tooth paste / tooth powder, organic manure and di ammonium phosphate and antibiotics, vitamins and polymers declined.

Inflation rate for the 'non-metallic mineral products' group declined by 0.2 per cent due to lower prices of polished granite and marbles. However, the price of asbestos corrugated sheet and lime moved up.

Inflation rate for the 'basic metals, alloys and metal products' group rose 0.7 per cent due to higher prices of ferro chrome, pig iron, pipes / tubes / rods / strips and sheets, wire rods, GP / GC sheets, HRC and steel rods and CRC, melting scrap, steel pipes and tubes, pencil ingots, billets, aluminium and sponge iron. However, the price of silver and ferro silicon declined.

Inflation rate for the 'machinery and machine tools' group rose 0.1 per cent due to higher price of TV sets and fibre optic cable, battery dry cells and insulators and grinding /wet coffee machinery. However, the price of sprinkler and textile machinery declined.

The final inflation rate for September has been revised to 3.80 per cent from the earlier figure of 3.57 per cent provisionally estimated earlier on 14 October 2016.