Wholesale price inflation at a three-year low of 5.96 % in March

The annual rate of inflation based on the wholesale price index hit a three-year low of 5.96 per cent in March 2013, helped by a fall in vegetable prices.

The wholesale price-based inflation rate stood at 6.84 per cent in the previous month and 7.69 per cent during the corresponding month of the previous year.

However, the inflation rate for January 2013 has now been revised upward to 7.31 per cent from the provisional figure of 6.62 per cent estimated earlier. This suggests a similar upward revision in subsequent months as well.

Build-up of inflation rate in the financial year so far was 5.96 per cent compared to 7.69 per cent in the corresponding period of the previous year.

The official wholesale price index for 'all commodities' (base: 2004-05 = 100) rose 0.2 per cent to 170.6 in March 2013 from 170.2 per cent in February 2013.

A fall in inflation rate to levels below the Reserve Bank's projection of 6.8 per cent at the close of the 2012-13 fiscal bodes well for a downward revision of interest rate by the RBI at its annual monetary policy review due next month.

The index for the `primary articles' group, which has a weight of 20.12 per cent in the wholesale price index, rose 0.4 per cent to 223.6 in March 2013 from 222.7 during the previous month, provisional estimates showed.

Among primary articles, the index for the 'non-food articles' group rose 0.6 per cent to 206.9 in March 2013 from 205.6 in the previous month.

During the month, prices of logs and timber were up 16 per cent while soyabean prices rose 11 per cent, raw rubber was up 7 per cent, mesta and gingelly seed up 5 per cent each and raw cotton, raw silk and raw jute were up 4 per cent each.

However, the prices of flowers declined 18 per cent, rape and mustard seed were down 9 per cent, copra (coconut) and fodder down 3 per cent each and prices of groundnut seed and guar seed declined by 1 per cent each.

The index for the 'minerals' group rose 2.1 per cent to 357.4 in March 2013 from 350.1 in the previous month.

During the month, prices of zinc concentrate were up 5 per cent, while iron ore prices rose 4 per cent, crude petroleum was up 2 per cent and copper ore prices rose 1 per cent.  However, the prices of magnesite were down 7 per cent while sillimanite was cheaper by 6 per cent, manganese ore and barytes down 3 per cent each and chromite prices were down 1 per cent.

The index for the `fuel and power' group, which has a weight of 14.91 per cent in the WPI, rose 0.4 per cent to 195.9 in March 2013 from 195.2 in the previous month.

During the month, prices of aviation turbine fuel were up 4 per cent and high-speed diesel and lignite were costlier by 2 per cent each.

However, naphtha and light diesel oil turned cheaper by 2 per cent each and petrol prices declined by 1 per cent.

The index for the `manufactured products' group, which has the maximum weight of 64.97 per cent in the WPI, rose 0.1 per cent to 148.4 in March 2013 from 148.2 in the previous month.

Among manufactured products, the index for the 'food products' group declined by 0.5 per cent to 164.9 in March 2013 from 165.7 in the previous month.

During the month, prices of sunflower oil declined by 7 per cent while cotton seed oil was cheaper by 5 per cent, mustard and rapeseed oil prices down 4 per cent each, tea leaf (unblended), groundnut oil, tea leaf (blended) and soyabean oil down 3 per cent each, processed prawn and canned fish down 2 per cent each and sugar, tea dust (unblended) and palm oil, copra oil, tea dust (blended) and sugar confectionary fell 1 per cent each. 

However, the prices of oil cakes and wheat flour (atta) rose 4 per cent each, gingelly oil and bakery products were dearer by 3 per cent each, salt gained 2 per cent and mixed spices, gur, sooji (rawa) and gola (cattle feed) moved up by 1 per cent each.

The index for the 'beverages, tobacco and tobacco products' group declined by 0.4 per cent to 178.1 in March 2013 from 178.8 in the previous month.

During the month, prices of dried tobacco fell 4 per cent and rectified spirit was cheaper by 1 per cent.

The index for the 'textiles' group declined by 0.3 per cent to 132.7 in March 2013 from 133.1 in the previous month.

During the month, prices of jute sacking bag and manmade fibre fell 1 per cent each. However, the prices of cotton yarn moved up by 1 per cent.

The index for 'wood and wood products' group declined by 0.1 per cent to 173.5 in March 2013 from 173.7 in the previous month.

During the month, prices of wooden chair and veneer wood declined by 3 per cent each.

The index for the 'paper and paper products' group rose 1.2 per cent to 140.0 in March 2013 from 138.3 in the previous month.

During the month prices of books/ periodicals/ journals were up 5 per cent each while newspaper prices rose 3 per cent, paper cartons / boxes were costlier by 2 per cent and prices of maplitho paper, paper for printing / poster and printing and writing paper were up 1 per cent each.

However, the prices of cardboard declined by 1 per cent.

The index for the 'leather and leather products' group rose 0.4 per cent to 134.3 in March 2013 from 133.8 in the previous month due to a 1 per cent increase in the prices of leather footwear.

The index for the 'rubber and plastic products' group rose 0.3 per cent to 139.4 in March from 139.0 in the previous month.

During the month, prices of rubber footwear rose 3 per cent and polyester film was costlier by 2 per cent while prices of plastic/PVC pipe rose 1 per cent.

The index for the 'chemicals and chemical products' group rose 0.4 per cent to 145.5 in March 2013 from 144.9 in the previous month.

During the month, prices of thermocol rose 8 per cent and polymers were dearer by 3 per cent while prices of basic organic chemicals and pesticides rose 2 per cent each and antibiotics, castor oil, vitamins and tooth paste / tooth powder were dearer by 1 per cent each.

However, the prices of safety matches/ match box fell 6 per cent, synthetic resin prices declined 2 per cent and non-cyclic compound and hair / body oils were cheaper by 1 per cent each.

The index for the 'non-metallic mineral products' group rose 1.8 per cent to 167.7 in March 2013 from 164.8 in the previous month.

During the month prices of marbles rose 19 per cent while white cement turned dearer by 3 per cent and grey cement prices rose 2 per cent.

 The index for the 'basic metals, alloys and metal products' group declined 0.1 per cent to 164.8 in March 2013 from 165.0 in the previous month.

During the month, prices of silver, utensils (other than aluminium) and pig iron were lower by 3 per cent each, sheets prices were down 2 per cent and steel castings, slab, furniture and metal containers cheaper by 1 per cent each.

However, the prices of steel structures rose 6 per cent, lead prices rose 5 per cent, melting scrap was dearer by 2 per cent and steel rods, pressure cooker, zinc and iron and steel wire moved up by 1 per cent each.

The index for the 'machinery and machine tools' group rose 0.2 per cent to 129.5 in March 2013 from 129.3 in the previous month.

During the month prices of fibre optic cable turned higher by 9 per cent and electric switch gears and electric generators were dearer by 2 per cent each and plastic machinery, boiler and accessories, engines, concrete vibrator and mixture, heating elements and rubber machinery were up 1 per cent each.

However, the prices of control equipments and ball/roller bearing declined by 1 per cent each.

The index for the 'transport, equipment and parts' group rose 0.8 per cent to 132.3 in March 2013 from 131.3 in the previous month.

During the month, prices of bus / mini bus / truck rose bay an average 4 per cent each.

Meanwhile, the revised (final) inflation rate for January 2013 stood at 7.31 per cent (up from the provisional figure of 6.62 per cent) as the revised wholesale price index for the month stood at 170.3 against the provisional estimate of 169.2 released earlier.