WPI inflation falls to 2.45% in May as consumer price inflation rises to 3.07%

The annual rate of inflation in India, based on monthly wholesale price Index (WPI), stood at 2.45 per cent in May 2019, against 3.07 per cent in April, provisional estimates released by the commerce ministry showed.

WPI inflation in the country stood at 4.78 per cent during the corresponding month of the previous year. 

Build-up of inflation in the financial year so far (April-May 2019-20) was 1.08 per cent compared to a build-up rate of 1.72 per cent in the corresponding period of the previous financial year.

Inflation rate for the `primary articles’ group, which has a weight of 22.62 per cent in the wholesale price index, rose 0.2 per cent in May 2019.

Within the primary articles group, inflation rate for the ‘food articles’ group remained unchanged at its previous month level mainly due to a fall in the prices of items such as betel leaves, fruits and vegetables, tea and wheat. Prices of items like fish, arhar, urad, peas/chawali, bajra, egg, masur, moong, gram, barley and ragi, on the other hand, declined.

Inflation for the 'non-food articles' group rose 0.9 per cent due to higher prices of floriculture, safflower (kardi seed), raw rubber, hides (raw), groundnut seed, linseed, raw jute, mesta, fodder, cotton seed, sunflower, raw silk and rape and mustard seed. However, the prices of copra (coconut), skins (raw), soyabean, coir fibre, gingelly seed (sesamum), niger seed and gaur seed declined.

Inflation rate for the 'minerals' group declined by 4.2 per cent due to lower prices of copper concentrate, bauxite, zinc concentrate, manganese ore and chromite. However, the prices of iron ore, lead concentrate and  limestone moved up.

Inflation rate for 'crude petroleum and natural gas' group rose 3.5 per cent due to higher prices of crude petroleum and  natural gas.

Inflation rate for the `fuel and power’ group, which has a weight of 13.15 per cent in the wholesale price index rose 0.6 per cent in may 2019. 

Within the group, inflation rate for the 'mineral oils' group rose 1 per cent due to higher prices of naphtha, ATF, LPG, kerosene, furnace oil and HSD.

Inflation rate for the `manufactured products’ group, which has a weight of 64.23 per cent in the WPI, rose 0.1 per cent in may 2019. 

Among the manufactured products group, inflation rate for the 'food products' group rose 0.4 per cent due to higher prices of groundnut oil, gur, vanaspati,  macaroni, noodles, couscous and similar farinaceous products, chicken/duck, (dressed - fresh/frozen), bagasse, molasses, powdered milk, coffee powder with chicory, prepared animal feeds, gram powder (besan), sugar, starches and starch products, castor oil, butter, processed fish, crustaceans and molluscs and products thereof, processing and preserving of fruit and vegetables, honey, spices (including mixed spices), mustard oil, salt, basmati rice and rice products. However, the prices of copra oil, rapeseed oil, processed tea, maida and sooji (rawa), palm oil, instant coffee, health supplements, processed ready to eat food, sunflower oil, rice bran oil, wheat flour (atta) and other meats, preserved/processed declined.

Inflation rate for the 'beverages' group declined by 0.2 per cent due to lower prices of aerated drinks/soft drinks (including soft drink concentrates), bottled mineral water and spirits. However, the prices of beer, country liquor and rectified spirit moved up.

Inflation rate for the 'tobacco and its products' group declined by 1.6 per cent due to lower prices of other tobacco products.

Inflation rate for the 'textiles' group rose 0.3 per cent due to higher prices of knitted and crocheted fabrics, cordage, rope, twine and netting and weaving and finishing of textiles. However, the price of viscose yarn declined.

Inflation rate for the 'wearing apparel' group rose 0.5 per cent to due to higher prices of wearing apparel (woven) (except fur apparel. However, the prices of manufacture of knitted and crocheted apparel declined.

Inflation rate for the 'leather and related products' group declined by 0.9 per cent due to lower prices of chrome tanned leather and leather shoe. However, the prices of travel goods, handbags, office bags etc and vegetable tanned leather and waterproof footwear moved up.

Inflation rate for the 'wood and wood products and cork' group rose 0.5 per cent due to higher prices of wooden panel and wood cutting, processed/sized and lamination wooden sheets/veneer sheets and particle boards. However, the prices of wooden block (compressed or not) declined.

Inflation rate for the 'paper and paper products' group declined by 0.2 per cent due to lower prices of newsprint, laminated paper base paper tissue paper, kraft paper, card board and corrugated paper board. However, the prices of duplex paper and poster paper moved up.

Inflation rate for the 'printing and reproduction of recorded media ' group rose 0.5 per cent due to higher prices of printed labels, posters and calendars. However, the price of sticker plastic declined.

Inflation rate for the 'pharmaceuticals, medicinal chemical and botanical products' group rose 0.9 per cent due to higher prices of anti-cancer drugs, anti-retroviral drugs for HIV treatment, vials/ampoule, glass, empty or filled, sulpha drugs, anti inflammatory preparation, vaccine for polio and antibiotics and preparations thereof. However, the prices of antipyretic, analgesic, anti-inflammatory formulations declined.

Inflation rate for the 'rubber and plastic products' group declined by 1 per cent due to lower prices of plastic and rubber components and parts, plastic box/container, medium and heavy commercial vehicle tyre and elastic webbing, tractor tyre and rubber moulded goods, motor car tyre, PVC fittings and other accessories, polythene film, acrylic/plastic sheet, polyester film (non-metalised), rubber tread, solid rubber tyres/wheels, plastic bag and plastic film. However, the prices of plastic button, tooth brush, plastic furniture, plastic tube (flexible/non-flexible) and polypropylene film, processed rubber and conveyer belt (fibre based)  and plastic bottle, plastic tank, rubber cloth/sheet, 2/3 wheeler rubber tube and thermocol moved up.

Inflation rate for the 'other non-metallic mineral products' group rose 1.4 per cent due to higher prices of slag cement, pozzolana cement, ordinary portland cement, porcelain sanitary ware cement superfine, clinker, glass bottle, graphite rod, asbestos corrugated sheet, railway sleeper and stone chip. However, the prices of ordinary sheet glass, toughened glass, marble slab, non ceramic tiles, lime and calcium carbonate, fibre glass (including sheet, opthalmic lens and granite) declined.

Inflation rate for the 'basic metals' group declined by 0.8 per cent due to lower prices of MS castings, aluminium disk and circles, mild steel (MS) blooms, sponge iron/direct reduced iron (DRI), aluminium ingot, MS pencil ingots,  ferrosilicon, hot rolled (HR) coils and sheets (including narrow strip), MS bright bars, aluminium shapes - bars/rods/flats, alloy steel wire rods, aluminium powder, stainless steel coils, strips and sheets, pig iron, GP/GC sheet, ferromanganese, copper shapes - bars/rods/plates/strips - and aluminium alloys. However, the prices of ferrochrome, silicomanganese, steel forgings (rough), stainless steel bars and rods (including flats), alloy steel castings and MS wire rods moved up.

Inflation rate for the 'fabricated metal products, except machinery and equipment' group declined by 0.3 per cent due to lower prices of sanitary fittings of iron and steel, electrical stamping (laminated or otherwise, boilers, bolts, screws, nuts and nails of iron and steel, metal cutting tools and accessories, steel structures and cylinders. However, the prices of bracket and steel door, forged steel rings, hand tools and pressure cooker, stainless steel tank, jigs & fixtures, steel pipes, tubes & poles moved up.

Inflation rate for the 'computer, electronic and optical products' group rose 0.4 per cent due to higher prices of electro-diagnostic apparatus used in medical, surgical, dental or veterinary sciences, meter (non-electrical), capacitors, air conditioner and  sunglasses. However, the prices of modems and electronic printed circuit board (PCB)/micro circuit declined.

Inflation rate for the 'machinery and equipment' group rose 0.5 per cent due to higher prices of deep freezers, drilling machine, pressure vessel and tank for fermentation and other food processing, injection pump, separator, rice mill machinery, open-end spinning machinery, air or vacuum pump and furnaces, ovens, centrifugal pumps, soil preparation and cultivation machinery (other than tractors), air gas compressor (including compressor for refrigerator), pharmaceutical machinery, oil pump, hydraulic pump, sewing machines, chemical equipment and system and filtration equipment. However, the prices of conveyors (non-roller type), dumper, moulding machine and gasket kit, roller and ball bearings, cranes, bearings, gears, gearing and driving elements and excavator declined.

Inflation rate for the 'motor vehicles, trailers and semi-trailers' group rose 0.3 per cent due to higher prices of brake pad/brake liner/brake block/brake rubber, others, shock absorbers, piston ring/piston, compressor, wheels/wheels and parts, body (for commercial motor vehicles), shafts of all kinds, silencer and damper, chain, gear box and parts and engine. However, the price of axles of motor vehicles and cylinder liners declined.

Inflation rate for the 'other transport equipment' group rose 1.2 per cent due to higher prices of motor cycles and wagons. However, the price of bicycles of all types declined.

Inflation rate for the 'furniture' group rose 0.1 per cent due to higher prices of wooden furniture and iron/steel furniture. However, the prices of foam and rubber mattress and steel shutter gate declined.

Inflation rate for the 'other manufacturing' group declined by 0.1 per cent due to lower price of silver. However, the prices of non-mechanical toys, stringed musical instruments (including santoor, guitars, etc) cricket bat, football and plastic moulded-others toys moved up.

Food price inflation rate based on the WPI food index, consisting of ‘food articles’ from primary articles group and manufactured products groups and hasa weight of 24.38 per cent in the wholesale price index, increased from 4.95 per cent in April 2019 to 5.10 per cent in May 2019.

The revised wholesale price inflation in March 2019, based on the final wholesale price index for 'all commodities' (Base: 2011-12=100) stood at 3.10 per cent against 3.18 per cent (provisional) as reported on 15 April 2019.