Wholesale price inflation hits a near 5-year low of 2.38% in September

India's annual rate of inflation based on the wholesale price index (WPI) eased to a near five-year low of 2.38 per cent in September, its slowest pace since October 2009, helped by a moderation in food and fuel prices.

The annual rate of inflation based on the wholesale price index had risen 3.74 per cent in August and 7.05 per cent during the corresponding month of the previous year.

The build-up of the rate of inflation so far during the financial year was 2.61 per cent compared to 6.23 per cent in the corresponding period of the previous year, provisional figures released by the Central Statistics Office (CSO) showed.

The index for the primary articles group, which has a weight of 20.12 per cent in the wholesale price index, declined by 1.3 per cent year-on-year in September 2014.

Within the group, the index for the food articles group declined by 1.4 per cent due to lower price of tea and fruits and vegetables, maize, poultry chicken, fish, condiments and spices, jowar, pork and moong. However, the price of egg, coffee, fish (fresh water), barley, masur, arhar, rice, bajra, gram, ragi and urad moved up.

The index for  the non-food articles group declined by 2.0 per cent due to lower price of flowers, safflower, soyabean, raw rubber, gingelly seed, mesta, copra, raw cotton, linseed, castor seed and coir fibre. However, the price of fodder, groundnut seed, guar seed, niger seed and raw silk moved up.

The index for the minerals group rose 0.1 per cent due to higher price of chromite, iron ore and steatite. However, the price of barytes, sillimanite, copper ore, manganese ore and zinc concentrate declined.

The index for the fuel and power group, which  has a weight of 14.91 per cent in the wholesale price index, declined by 0.3 per cent due to lower price of petrol, bitumen, aviation turbine fuel and furnace oil. However, the price of lubricants and high speed diesel moved up.

The index for the manufactured products group, which has the highest weight of 64.97 per cent in the wholesale price index, remained unchanged at its previous month's level.

Within the manufactured products group, the index for the food products group rose 0.2 per cent due to higher price of powder milk, tea leaf, ghee, bakery products and groundnut oil and oil cakes. However, the price of tea dust, gram powder (besan), rice bran oil and vanaspati and sunflower oil, gur, gingelly oil, soyabean oil, sugar, wheat flour (atta) and palm oil declined.

The index for the beverages, tobacco and tobacco products group rose 0.7 per cent due to higher price of cigarettes. However, the price of chewing tobacco declined.

The index for the textiles group declined by 0.1 per cent due to lower price of jute sacking cloth and cotton yarn. However, the price of jute yarn, jute sacking bag, gunny and hessian cloth, manmade fibre and manmade fabric moved up.

The index for the wood and wood products group rose 0.4 per cent due to higher price of plywood and fibre board.

The index for the paper and paper products group rose 0.3 per cent due to higher price of paper rolls, laminated paper and paper cartons/boxes. However, the price of books/ periodicals/ journals declined.

The index for the leather and leather products group declined by 0.1 per cent due to lower price of footwear/safety boot and other leather footwear. However, the price of leather garments and jackets moved up.

The index for the rubber and plastic products group rose 0.2 per cent due to higher price of HDPE woven fabric, tooth brush, plastic containers, rubber transmission belt, polyester chips and plastic/PVC chappals, HDPE woven sacks and reclaimed rubber. However, the prices of plastic / PVC pipe, plastic / PVC suitcases, expandable polystyrene and plastic rolls declined.  

The index for the chemicals and chemical products group declined by 0.3 per cent due to lower price of synthetic resin, vitamins and organic manure, non-cyclic compound, basic organic chemicals, rubber chemicals and castor oil. However, the price of dye and dye intermediates and distemper moved up.

The index for the non-metallic mineral products group rose 0.8 per cent due to higher price of asbestos corrugated sheet, white cement, marbles and grey cement. However, the price of slag cement declined.

The index for the basic metals, alloys and metal products group declined by 0.4 per cent due to lower price of gold and gold ornaments, zinc, silver and pencil ingots, wire rods, steel rods, billets, CRC, pig iron and steel castings. However, the price of furniture, sponge iron, ferro manganese, melting scrap and pressure cooker moved up.

The index for the machinery and machine tools group rose 0.1 per cent due to higher price of fibre optic cable, ball/roller bearing and electric generators, textile machinery, machine tools, electric motors and control equipments. However, the price of battery dry cells, pump and assembly and boiler and accessories, communication equipments, insulators and conductor declined.

The index for the transport, equipment and parts group rose 0.1 per cent due to higher price of gauges, geared motor, gear boxes and parts and suspension. However, the price of trolleys/tanker, wheels and parts and wiper/blade/arm etc declined.

The CSO, meanwhile, revised the WPI inflation reading for July to 5.41 per cent from 5.19 per cent earlier, based on updated figures.