Wholesale price inflation declines for a 15th month; falls to -0.9% in January

Wholesale price inflation based on the wholesale price index registered its fifteenth consecutive fall, declining at an annual rate of 0.90 per cent in January, pushed down by tumbling oil prices, official data released today showed.

This compares with an upward momentum in consumer price inflation, although the pace of decline was slower.

The annual rate of inflation stood at -0.90 per cent in January 2016, compared with -0.73 per cent in the previous month and -0.95 per cent during the corresponding month of the previous year, provisional figures for January 2016 released today showed.

Build-up of inflation so far in the financial year stood at minus (-) 0.23 per cent, against a build up rate of minus (-)1.66 per cent in the corresponding period of the previous year, as per provisional estimates of the Central Statistics Organisation (CSO).

Inflation rate for the primary articles group, which has a weight of 20.12 per cent in the wholesale price index (WPI) declined by 1.7 per cent during January 2016.

Among primary articles, the inflation rate for the 'food articles'  group declined by 1.9 per cent due to lower prices of fruits and vegetables, jowar, arhar, condiments and spices, urad, gram, poultry chicken, moong, masur, coffee and rice. However, the prices of egg, bajra, tea, ragi, barley, beef and buffalo meat, pork and fish moved up.

Inflation rate for the 'non-food articles' group rose 0.3 per cent due to higher prices of mesta, flowers, raw jute and raw silk, raw wool, cotton seed, raw cotton and gingelly seed (sesamum). However, the prices of copra, castor seed, niger seed, raw rubber, coir fibre, linseed, soyabean, rape and mustard seed, fodder and sunflower declined.

Inflation rate for the 'minerals' group declined by 6.2 per cent in January 2016 due to lower prices of crude petroleum, iron ore, limestone, manganese ore, copper ore and zinc concentrate. However, the prices of magnesite, chromite, phosphorite and sillimanite moved up.

Inflation rate for the fuel and power group, which has a weight of 14.91 per cent in the WPI, declined by 2.9 per cent due to lower prices of furnace oil, aviation turbine fuel, bitumen, high speed diesel, petrol and kerosene. However, the price of LPG moved up.

Inflation rate for the `manufactured products' group, which account for 64.97 per cent rose of the total weight of commodities in the WPI, rose 0.1 per cent during January 2016.

Among manufactured products, the index for the 'food products' group rose 0.7 per cent due to higher prices of sugar, mixed spices, oil cakes, cotton seed oil, sooji (rawa), processed prawn, gola (cattle feed), sunflower oil, gingelly oil and gram powder (besan). However, the prices of vanaspati, tea, coffee powder, edible oils (mustard and rapeseed oil, coconut oil, rice bran oil and groundnut oil), bakery products, milk powder and gur declined.

Inflation rate for the 'beverages, tobacco and tobacco products' group rose 0.6 per cent due to higher prices of zarda, dried tobacco and cigarette.

Inflation rate for the 'textiles' group declined by 0.2 per cent due to lower prices of tyre cord fabric, man-made fabric and fibre and cotton yarn. However, the prices of jute sacking bag, gunny, hessian cloth, jute sacking cloth and woollen textiles moved up.

Inflation rate for the 'wood and wood products' group declined by 0.6 per cent due to lower prices of plywood and fibre board.

Inflation rate for the 'paper and paper products' group rose 0.5 per cent due to higher prices of books / periodicals / journals and corrugated sheet boxes and card board. However, the prices of paper cartons / boxes declined.

Inflation rate for the 'leather and leather products' group rose 0.3 per cent due to higher price of leather.

Inflation rate for the 'rubber and plastic products' group declined by 0.4 per cent due to lower prices of rubber transmission belt, dot pen with refill, polyester film, HDPE bag, reclaimed rubber, rigid PVC, plastic films and sheets, plastic/PVC shoes and chappals, HDPE woven fabric, rubber components and parts and other rubber products. However, the prices of plastic components / accessories and HDPE woven sacks and seamless tubes and pipes moved up.

Inflation rate for the 'chemicals and chemical products' group declined by 0.1 per cent due to lower prices of non-cyclic compound, lacquer and varnishes, ammonium sulphate and turpentine oil. However, the prices of synthetic resin and pesticides, organic manure and vitamins moved up.

Inflation rate for the 'non-metallic mineral products' group rose 0.6 per cent due to higher prices of marbles and grey cement. However, the prices of polished granite and lime and railway sleeper declined.

Inflation rate for the 'basic metals, alloys and metal products' group declined by 0.5 per cent due to lower prices of pipes/tubes/rods/strips, zinc, sheets and CRC, HRC and GP/GC sheets, steel structures, ferro silicon, plates, steel - pipes and tubes, ferro manganese, aluminium, wire rods, rounds, steel castings and pig iron. However, the prices of billets, pencil ingots, angles, rebars, sponge iron, joist and beams and steel rods moved up.

Inflation rate for the 'transport, equipment and parts' group rose 0.1 per cent due to higher prices of railway brake gear.

The revised inflation rate for November based on the final wholesale price index for 'all commodities' stood at -2.04 per cent compared to -1.99 per cent as reported earlier.