Wholesale price inflation rises to 3.93% in November

The annual rate of inflation based on the wholesale price index (WPI) stood at 3.93% in November compared to 3.59 per cent in the previous month and 1.82 per cent during the corresponding month of the previous year, provisional data released by the commerce ministry showed.

Build-up of inflation rate in the financial year so far was 2.74 per cent against 3.90 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, increased by 1.6 per cent in November 2017.

Among primary articles, inflation for the 'food articles' group rose 1.8 per cent due to higher prices of betel leaves, fruits and vegetables, condiments and spices, wheat, egg, fish, beef, buffalo meat and pork. However, the prices of barley, ragi, gram, maize, jowar, urad, rajma, arhar, peas/chawali, masur, bajra, moong and poultry chicken declined.

For the 'non-food articles' group, the inflation rate declined by 1.9 per cent due to lower prices of tanning materials, fodder, raw rubber, raw silk, raw jute, skins (raw), castor seed, soyabean, mesta, coir fibre, safflower (kardi seed), guar seed and hides (raw). However, the price of copra (coconut), raw wool, floriculture, cotton seed, gingelly seed, rape, mustard seed and raw cotton moved up.

For the 'minerals' group, it rose 7.0 per cent due to higher prices of iron ore, copper concentrate, lead concentrate, zinc concentrate, manganese ore and phosphorite. However, the prices of sillimanite and bauxite declined.

Inflation rate for the 'mineral oils' group rose 2.9 per cent due to higher prices of LPG, naphtha, bitumen and furnace oil, ATF, HSD and petroleum coke and petrol.

For the `crude petroleum and natural gas' group rose 6.7 per cent due to higher 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 1.6 per cent in November 2017.

Within the group inflation rate for the fuel group 'coal' rose 0.1 per cent due to higher price of lignite.

Inflation rate for the `manufactured  products' group, which has a weight of 64.23 per cent in the wholesale price index, rose 0.2 per cent in November 2017.

Among manufactured groups, inflation rate for the `food products' group declined by 0.3 per cent due to lower prices of molasses, gram powder (besan), bagasse, gur, macaroni, noodles, couscous and similar farinaceous products and processing and preserving of fish, crustaceans, molluscs and products thereof, coffee powder with chicory, health supplements, ice cream, instant coffee, ghee, rice, non-basmati, powder milk, rice products, groundnut oil, buffalo meat, fresh/frozen, sooji (rawa), other meats (including preserved/processed), cotton seed oil, manufacture of starches and starch products and processed tea.

However, the price of copra oil and spices (including mixed spices), palm oil, rice bran oil, luoresce and chicken/duck (dressed-fresh/frozen), wheat flour (atta), wheat bran, mustard oil, sunflower oil and castor oil moved up.

Inflation rate for the 'manufacture of beverages' group rose by 0.4 per cent due to higher prices of spirits and aerated drinks/soft drinks (including soft drink concentrates). However, the prices of rectified spirit and bottled mineral water declined.

Inflation rate for the 'manufactured tobacco products' group rose 4.3 per cent due to higher prices of cigarette and other tobacco products and beedi.

For the 'manufactured textiles', the inflation rate group rose 0.3 per cent due to higher prices of weaving and finishing of textiles and synthetic yarn. However, the prices of cotton yarn and manufacture of cordage, rope, twine and netting and manufacture of knitted and crocheted fabrics declined.

Inflation rate for the 'manufacture of wearing apparel' group rose 0.3 per cent due to higher prices of manufacture of knitted and crocheted apparel.

For the 'manufacture of leather and related products' group, the inflation rate  rose 0.3 per cent due to higher prices of gloves of leather, chrome tanned leather, harness, saddles and other related items, travel goods, handbags, office bags, canvas shoes and leather shoe. However, the prices of belt and other articles of leather and waterproof footwear declined.

The inflation rate for the 'manufacture of wood and of products of wood and cork'group declined by 0.5 per cent due to lower prices of plywood block boards and lamination wooden sheets/veneer sheets.  However, the prices of timber/wooden plank, sawn/resawn, wood cutting, processed/sized and particle boards moved up.

The rate of inflation for the 'manufacture of paper and paper products' group declined by 1.3 per cent due to lower prices of corrugated sheet box, tissue paper, paper carton/box, laminated plastic sheet and paper for printing and writing.  However, the price of paper bag, including craft paper bag, duplex paper, corrugated paper board and hard board moved up.

Inflation rate for 'printing and reproduction of recorded media' group declined by 0.4 per cent due to lower prices of hologram, journal/periodical and printed labels/posters/calendars and printed form and schedule. However, the price of printed books moved up.

For the 'manufacture of chemicals and chemical products' group, it rose rose 0.4 per cent due to higher prices of acetic acid and its derivatives, sulphuric acid, creams and lotions for external application, camphor, menthol, caustic soda (sodium hydroxide), phosphoric acid, epoxy, liquid, carbon black, ethyl acetate and plasticizer, nitrogenous fertilizer, others, organic solvent, amine, alcohols, ammonia liquid and aniline (including PNA,ONA, OCPNA), polyester chips or polyethylene luorescente (PET) chips, tooth paste/tooth powder, ammonium sulphate, soda ash/washing soda, additive, foundry chemical, dye stuff/dyes including dye intermediates and pigments/colours, XLPE compound and other petrochemical intermediates and liquid air and other gaseous products, other inorganic chemicals, powder coating material, alkyl benzene, toilet soap, poly propylene (PP), polyester fibre fabric, organic surface active agent, mono ethyl glycol, detergent cake, washing soap cake/bar/powder, varnish (all types), viscose staple fibre and polyester film(metalised). However, the price of luores, shampoo, sodium silicate, oleoresin, paint, adhesive tape (non-medicinal), agarbatti and phthalic anhydride, aromatic chemicals, superphospate/phosphatic fertilizer, others, explosive, polystyrene, expandable, adhesive excluding gum, di-ammonium phosphate, nitric acid, insecticide and pesticide, organic chemicals, printing ink and ammonium nitrate declined.

Inflation rate for the 'pharmaceuticals, medicinal chemical and botanical products' group declined by 0.4 per cent due to lower prices of antidiabetic drug (excluding insulin, ie, tolbutam) and simvastatin. However, the prices of anti inflammatory preparation, cotton wool (medicinal), vaccine for hepatitis-B, plastic capsules and vials/ampoule, glass, empty or filled, antipyretic, analgesic, anti-inflammatory formulations, ayurvedic medicaments and antioxidants moved up.

Inflation rate for the 'manufacture of other non-metallic mineral products' group declined by 0.4 per cent due to lower prices of plain bricks, non ceramic tiles, clinker and cement blocks (concrete), asbestos corrugated sheet, electric insulating material, ceramic tiles (vitrified tiles), slag cement, marble slab and glass bottle. However, the prices of porcelain sanitary ware, granite, stone, chip, porcelain crockery and white cement moved up.

Inflation rate for the 'manufacture of basic metals' group rose by 0.3 per cent due to higher prices of alloy steel castings, aluminium alloys, copper shapes- bars/rods/plates/strips, steel forgings – rough, rails, copper metal/copper rings, stainless steel tubes, aluminium shapes – bars/rods/flats and ms bright bars, aluminium disks and circles, luoresc foil, stainless steel coils, strips and sheets, cold rolled (CR) coils and sheets, including narrow strip, ferrochrome, aluminium powder, lead ingots, bars, blocks, plates, aluminium metal, MS pencil ingots, angles, channels, sections, steel (coated/not) and stainless steel bars and rods, including flats. However, the prices of other ferro alloys, MS castings and aluminium ingot, GP/GC sheet, cast iron, castings, ferromanganese and galvanized iron pipes declined.

The rate of inflation based on WPI food index consisting of 'food articles' from primary articles group and 'food products' from manufactured products group increased from 3.23 per cent in October 2017 to 4.10 per cent in November 2017.