Wholesale price inflation lower at 2.26% in February

Build-up of inflation rate in the financial year so far stood at 1.92 per cent compared to a build up rate of 2.75 per cent in the corresponding period of the previous year.

Inflation rate for the `primary articles’ group, which has a weight of 22.62 per cent in the wholesale price index, declined by 2.8 per cent in February 2020.

Within the primary articles group, inflation rate for the 'food articles' group declined by 3.7 percent due to lower prices of fruits & vegetables, tea, egg, fish (inland), pork, condiments & spices, bajra, gram, jowar, maize, ragi, wheat, urad and masur. However, the prices of beef and buffalo meat, fish (marine), poultry chicken, mutton, betel leaves, moong, barley, rajma and arhar moved up.

Inflation rate for the 'non-food articles' group declined by 0.4 per cent due to lower prices of safflower (kardi seed), soyabean, cotton seed, castor seed, niger seed and linseed, gaur seed, rape & mustard seed, fodder, raw cotton and mesta. However, the price of raw silk, floriculture, groundnut seed and raw jute, gingelly seed (sesamum), skins (raw), coir fibre and raw rubber moved up.

Inflation rate for the 'minerals' group rose by 3.5 per cent due to higher prices of iron ore, phosphorite and copper concentrate and limestone. However, the price of chromite and bauxite, lead concentrate, zinc concentrate and manganese ore declined.

Inflation rate for the 'crude petroleum and natural gas' group declined by 1.5 per cent due to lower price of crude petroleum.

Inflation rate for the `fuel and power’ group, which has a weight of 13.15 per cent in the wholesale price index rose by 1.2 per cent in February 2020. 

Within the group, inflation rate for the 'mineral oils' group declined by 1.2 per cent due to lower price of naphtha, HSD and petrol. However, the prices of LPG, petroleum coke, furnace oil and bitumen, kerosene and lube oils moved up.

Inflation rate for the 'electricity' group rose by 7.2 per cent due to higher prices of electricity.

Inflation rate for the `manufactured products’ group, which has a weight of 64.23 per cent in the wholesale price index, rose by 0.2 per cent in February 2020.

Within the group, 'food products' group declined by 0.9 per cent due to lower prices of health supplements, rice bran oil, rapeseed oil and processed tea, gur, cotton seed oil, animal feeds, chicken/duck, (dressed - fresh/frozen), copra oil, mustard oil, castor oil, sunflower oil, sooji (rawa ) vanaspati, maida, rice products, gram powder (besan), palm oil, macaroni, noodles, couscous and similar farinaceous products, sugar, coffee powder with chicory, wheat flour (atta), manufacture of starches and starch products and other meats. However, the price of molasses, buffalo meat, fresh/frozen and spices (including mixed spices), processing and preserving of fish, crustaceans and molluscs and products thereof, ice cream, condensed milk, groundnut oil and salt moved up.

Inflation rate for the 'beverages' group rose by 0.1 per cent due to higher prices of wine, country liquor, rectified spirit and beer. However, the prices of aerated drinks/soft drinks (including soft drink concentrates) and bottled mineral water declined.

Inflation rate for the 'tobacco products' group rose by 2.1 per cent due to higher price of cigarette and other tobacco products.

The index for 'textiles' group rose by 0.3 per cent due to higher prices of weaving and finishing of textiles and manufacture of other textiles. However, the prices of made-up textile articles (except apparel), manufacture of cordage, rope, twine and netting and manufacture of knitted and crocheted fabrics declined.

Inflation rate for the 'wearing apparel' group declined by 0.1 per cent due to lower prices of leather garments (incl jackets). However, the prices of babies garments (knitted) moved up.

Inflation rate for the 'leather and related products' group declined by 0.4 per cent due to lower prices of leather shoe, vegetable tanned leather, harness, saddles and other related items. However, the prices of belt and other articles of leather, plastic/PVC chappals and waterproof footwear moved up.

Inflation rate for the 'wood and of wood products and cork’ group declined by 0.3 per cent due to lower prices of plywood block boards, wooden block (compressed or no) and particle boards. However, the prices of lamination wooden sheets/veneer sheets, wooden box/crate and wood cutting (processed/sized) moved up.

Inflation rate for the 'paper and paper products' group rose by 0.8 per cent due to higher prices of tissue paper, map litho paper, corrugated sheet box, hard board, base paper, paper for printing and writing, kraft paper and pulp board. However, the price of paper bag (including craft paper bag) and laminated paper declined.

Inflation rate for the 'chemicals and chemical products' group declined by 0.3 per cent due to lower prices of polypropylene, mono ethyl glycol, sodium silicate, caustic soda (sodium hydroxide), menthol, oleoresin, carbon black, safety matches, printing ink, viscose staple fibre, acetic acid and its derivatives, soda ash/washing soda, plasticizer, ammonium phosphate, paint, ethylene oxide, detergent cake, washing soap cake/bar/powder, urea, ammonium sulphate, fatty acid, gelatin and aromatic chemicals. However, the price of nitric acid, catalysts, organic surface active agent, powder coating material and organic solvent, alcohols, aniline (including PNA, ONA. OCPNA) and ethyl acetate, amine, camphor, organic chemicals, other inorganic chemicals, adhesive tape (non-medicinal), ammonia liquid, liquid air and other gaseous products, polyester film (metalized), phthalic anhydride, poly vinyl chloride (PVC), dye stuff/dyes (incl dye intermediates and pigments/colours), sulphuric acid, ammonium nitrate, fungicide, liquid, foundry chemical, toilet soap and additive moved up.

Inflation rate for the 'pharmaceuticals, medicinal chemical and botanical products' group rose 2.0 per cent due to higher prices of anti-malarial drugs, antidiabetic drug (excluding insulin, ie, tolbutam), anti-retroviral drugs for HIV treatment, API and formulations of vitamins, anti inflammatory preparation and antioxidants, antipyretic, analgesic, anti-inflammatory formulations, anti allergic drugs and antibiotics and preparations thereof. However, the prices of vials/ampoule, glass, empty or filled and plastic capsules declined.

Inflation rate for the 'rubber and plastics products' group declined by 0.2 per cent due to lower prices of elastic webbing, plastic tape, plastic box/container, plastic tank, condoms, cycle/cycle rickshaw tyre, tooth brush, rubber tread, 2/3 wheeler tyre, processed rubber, plastic tube (flexible/non-flexible), tractor tyre, solid rubber tyres/wheels and polypropylene film. However, the prices of plastic furniture, plastic button, rubber components and parts, rubberised dipped fabric and rubber cloth/sheet, rubber tubes (not for tyres), V-belt, PVC fittings and other accessories, plastic bag, rubber crumb and polyester film (non-metalised) moved up.

Inflation rate for the 'other non-metallic mineral products' group rose by 0.7 per cent due to higher prices of cement superfine, ordinary portland cement, ceramic tiles (vitrified tiles), porcelain sanitary ware, marble slab, slag cement, fibre glass (incl. Sheet), railway sleeper and pozzolana cement. However, the price of ordinary sheet glass, stone, chip, cement blocks (concrete), lime and calcium carbonate, glass bottle and non-ceramic tiles declined.

Inflation rate for the 'basic metals' group rose 1.1 per cent due to higher prices of stainless steel pencil ingots/billets/slabs, hot rolled (HR) coils and sheets, including narrow strip, MS pencil ingots, sponge iron/direct reduced iron (DRI), MS bright bars and GP/GC sheet, alloy steel wire rods, cold rolled (CR) coils and sheets (including narrow strip), pig iron, silicomanganese, steel cables, other ferro alloys, angles, channels, sections, steel (coated/not), stainless steel tubes and ferromanganese. However, the prices of stainless steel coils, strips and sheets and, aluminium shapes (bars/rods/flats), copper shapes (bars/rods/plates/strips), aluminium ingot, copper metal/copper rings, brass metal/sheet/coils, MS castings, aluminium alloys, aluminium disk and circles and alloy steel castings declined.

Inflation rate for the 'fabricated metal products (except machinery and equipment)' group declined by 0.7 per cent due to lower prices of bolts, screws, nuts and nails of iron and steel, forged steel rings, cylinders, steel structures, steel door and electrical stamping (laminated or otherwise). However, the prices of iron/steel hinges, boilers, copper bolts, screws, nuts, metal cutting tools and accessories moved up.

Inflation rate for the 'computer, electronic and optical products' group declined by 0.2 per cent due to lower prices of telephone sets (including mobile handsets) and meter (non-electrical), colour TV and electronic printed circuit board (PCB)/micro circuit. However, the prices of UPS in solid state drives and electro-diagnostic apparatus, used in medical, surgical, dental or veterinary sciences, scientific time keeping device, X-ray equipment and capacitors moved up.

Inflation rate for the 'electrical equipment' group declined by 0.1 per cent due to lower prices of lead acid batteries for vehicles and other uses, solenoid valve, ACSR conductors, aluminium wire and copper wire, domestic gas stove, PVC insulated cable, batteries, connector/plug/socket/holder-electric, aluminium/alloy conductor, air coolers and washing machines/laundry machines. However, the prices of rotor/magneto rotor assembly, jelly filled cables, electric mixers/grinders/food processors and insulator and AC motor, insulating and flexible wire, electrical relay/conductor, safety fuse and electric switch moved up.

Inflation rate for the 'machinery and equipment' group rose by 0.4 per cent due to higher prices of pressure vessels and tanks for fermentation and other food processing, roller and ball bearings, oil pump, bearings, gears, gearing and driving elements, air gas compressor (including compressor for refrigerator), precision machinery equipment/form tools, grinding or polishing machine and filtration equipment and pharmaceutical machinery, conveyors (non-roller type), excavator, lathes, harvesters, sewing machines and threshers. However, the prices of dumper, moulding machine, open-end spinning machinery and roller mill (Raymond), injection pump, gasket kit, clutches and shaft couplings and air filters declined.

Inflation rate for the 'motor vehicles, trailers and semi-trailers' group declined by 0.3 per cent due to lower prices of seat for motor vehicles, shock absorbers, crankshaft, chain and brake pad/brake liner/brake block/brake rubber, others, and cylinder liners, chassis of different vehicle types and wheels/wheels and parts. However, the price of head lamp moved up.

Inflation rate for the 'other transport equipment' group rose 1.5 per cent due to higher prices of motor cycles, scooters and wagons. However, the prices of diesel/electric locomotive declined.

Inflation rate for the 'furniture' group declined by 1.2 per cent due to lower prices of foam and rubber mattress, wooden furniture, hospital furniture and steel shutter gate. However, the price of plastic fixtures moved up.

Inflation rate for the 'other manufacturing' group rose by 3.4 per cent due to higher prices of gold and gold ornaments, silver and playing cards. However, the prices of stringed musical instruments (incl santoor, guitars, etc), non-mechanical toys, football and cricket ball declined.

The rate of inflation based on WPI food index, consisting of ‘food articles’ from the primary articles group and ‘food products’ from the manufactured products group, which has a combined weight of 24.38 per cent in the wholesale price index, declined to 7.31 per cent in February, 2020, from 10.12 per cent in January.

The inflation rate for December 2019, based on the final wholesale price index for 'all commodities' (Base: 2011-12=100) stood at 2.76 per cent against 2.59 per cent (provisional) as reported on 14 January 2020.