Wholesale price inflation up at 5.7 per cent in March

The annual rate of inflation, based on the wholesale price index (WPI) stood at 5.70 per cent in March 2014 compared to 4.68 per cent in the previous month, mainly due to a firming up of food prices.

WPI inflation stood at 5.65 per cent during the corresponding month of the previous year.

Build-up of inflation rate in the financial year so far was 5.70 per cent compared to a build-up of 5.65 per cent in the corresponding period of the previous year.

The index for the primary articles group, which has a weight of 20.12 per cent in the WPI rose by 0.7 per cent in March 2014 compared to the previous month.

Among primary articles, the index for the 'food articles' group rose by 1.0 per cent in March 2014 compared to the previous month due to higher price of jowar, ragi, fruits and vegetables, maize, urad and moong, barley and bajra each and coffee, mutton, milk, fish-marine, masur and poultry chicken.  However, the price of egg, tea and wheat declined.

The index for 'non-food articles' group declined by 0.1 per cent due to lower price of flowers, guar seed, raw silk, raw cotton, cotton seed, sunflower and  raw jute, mesta and safflower (kardi seed). However, the price of fodder, copra (coconut), logs and timber and soyabean, gingelly seed and castor seed,      raw rubber, tobacco, rape and mustard seed, linseed, groundnut seed and coir fibre moved up.

The index for the 'minerals'  group declined by 0.3 per cent due to lower price of dolomite, magnesite, zinc concentrate, copper ore, barytes and chromite and crude petroleum. However, the price of sillimanite and iron ore and manganese ore moved up.

The index for the `fuel and power' group, which has a weight of 14.91 per cent in the WPI, rose by 0.2 per cent due to higher price of high speed diesel and petrol. However, the price of kerosene and bitumen and LPG declined.

The index for the `manufactured products' group, which has a weight of 64.97 per cent in the WPI, rose by 0.5 per cent in March 2014 compared to the previous month.

The index for the 'food products' group rose by 0.3 per cent in March 2014 due to higher price of tea dust (blended), rice bran oil, mustard and rapeseed oil, sunflower oil, gur, sugar and gola (cattle feed). However, the price of coffee powder, tea leaf (unblended) and cotton seed oil and groundnut oil, oil cakes and processed prawn declined.

The index for the 'beverages, tobacco and tobacco products' group rose by 4.0 per cent in March 2014 due to higher prices of cigarette, rectified spirit and IMFL-blended, dried tobacco and beer.

The index for the 'textiles' group rose by 0.6 per cent in March 2014 due to higher price of gunny and hessian cloth and cotton yarn, woollen textiles and jute sacking bag. However, the price of jute yarn declined.

The index for the 'wood and wood products' group rose by 0.5 per cent in March 2014 due to higher price of plywood and fibre board.

The index for the 'paper and paper products' group rose by 0.1 per cent in March 2014 due to higher price of maplitho paper and kraft paper and bags. However, the price of paper cartons /boxes declined.

The index for the 'leather and leather products' group rose by 0.5 per cent in March 2014 due to higher price of leather garments and jackets.

The index for the 'rubber and plastic products' group rose by 0.5 per cent in March 2014 due to higher price of plastic products.

The index for the 'chemicals and chemical products' group rose by 0.2 per cent in March 2014 due to higher price of synthetic resin, dye and dye intermediates and pigment and pigment intermediates, pesticides, castor oil, non-cyclic compound, rubber chemicals, thermocol and safety  matches/ match box.  However, the price of agarbattis and basic organic chemicals declined.

The index for the 'non-metallic mineral products' group rose 0.7 per cent in March 2014 due to higher price of marbles, bricks and tiles and railway sleeper and white cement.

The index for the 'basic metals, alloys and metal products' group rose by 0.6 per cent due to higher price of rails, brass, pencil ingots, nuts/bolts/screw/ washers and zinc, ferro-chrome, ferro-silicon, steel castings, silver and GP/GC sheets and ferro-manganese, sheets, joist and beams, aluminium and metal containers.

The index for the 'machinery and machine tools' group rose by 0.2 per cent in March 2014 due to higher price of battery (dry cells), fibre optic cable, TV sets and air-conditioner and refrigerators and ball / roller bearing and control equipments.  However, the price of sprinkler and capacitors declined.

The index for the 'transport, equipment and parts' group rose by 0.2 per cent in March 2014 due to higher price of tractors and auto parts.

The revised inflation rate based on the final index of wholesale prices of all commodities stood at 5.17 per cent compared to 5.05 per cent reported earlier.

(Also see: Consumer price inflation rises to 8.31% in March)