WPI drops by -0.91% in February

The annual rate of inflation, based on monthly WPI, stood at -0.91% (provisional) for the month of February, 2016 (over February, 2015) as compared to -0.90% (provisional) for the previous month and -2.17% during the corresponding month of the previous year. 

"Build up inflation rate in the financial year so far was -1.19% compared to a build up rate of -2.61% in the corresponding period of the previous year," read a government statement.

The index for this major group declined by 3.4 percent to 244.7 (provisional) from 253.3 (provisional) for the previous month.  The groups and items which showed variations during the month are as follows:-

The index for ‘Food Articles’ group declined by 3.2 percent to 259.1 (provisional) from 267.6 (provisional) for the previous month due to lower price of fruits & vegetables (11%), egg (6%), arhar and gram (5% each), coffee and moong (4% each),      masur (3%), condiments & spices (2%) and wheat, jowar and fish-inland (1% each).  However, the price of barley (4%),      fish-marine (3%), bajra (2%) and pork, ragi, maize and poultry chicken (1% each) moved up.

The index for ‘Non-Food Articles’  group declined by 2.9 percent to 217.9 (provisional) from 224.5 (provisional) for the previous month due to lower price of flowers (18%), gingelly seed, castor seed and niger seed (6% each), rape & mustard seed and guar seed (5% each), raw rubber (4%), raw cotton, linseed and fodder (3% each), copra (coconut) and groundnut seed (2% each) and coir fibre (1%).  However, the price of raw jute and raw silk (2% each) and sunflower (1%) moved up.

The index for ‘Minerals’ group declined by 8.1 percent to 183.0 (provisional) from 199.2 (provisional) for the previous month due to lower price of crude petroleum (11%), iron ore (8%), copper ore and limestone (5% each), sillimanite (4%) and manganese ore (3%).  However, the price of zinc concentrate (21%), magnesite (2%) and chromite and phosphorite      (1% each) moved up.

The index for this major group declined by 1.2 percent to  169.6 (provisional) from 171.6  (provisional) for the previous month due to lower price of aviation turbine fuel (14%), bitumen (7%), furnace oil (3%) and LPG, petrol and high speed diesel (1% each).

The index for this major group rose by 0.3 percent to 153.1 (provisional) from 152.7 (provisional) for the previous month. The groups and items for which the index showed variations during the month are as follows:-

The index for ‘Food Products’ group rose by 0.8 percent to 178.1 (provisional) from 176.7 (provisional) for the previous month due to higher price of vanaspati (5%), sugar (4%), gingelly oil and tea dust (unblended) (3% each) and khandsari,     sunflower oil, palm oil and canned fish (1% each).  However, the price of tea dust (blended) and tea leaf (blended) (4% each), mustard & rapeseed oil (3%), processed prawn, tea leaf (unblended) and powder milk (2% each) and mixed spices and gur (1% each) declined.

The index for ‘Beverages, Tobacco & Tobacco Products’ group rose by 0.4 percent to 207.2 (provisional) from 206.4 (provisional) for the previous month due to higher price of chewing tobacco (scented or not ) and dried tobacco (4% each) and beer (1%).

The index for ‘Textiles’ group rose by 0.1 percent to 139.6 (provisional) from 139.4 (provisional) for the previous month due to higher price of jute yarn (4%), jute sacking cloth (2%) and jute sacking bag, gunny and hessian cloth and cotton yarn (1 % each).  However, the price of tyre cord fabric (1%) declined.

The index for ‘Wood & Wood Products’ group rose by 0.3 percent to 195.9 (provisional) from 195.3 (provisional) for the previous month due to higher price of plywood & fibre board (1%).  However, the price of processed wood (1%) declined.

The index for ‘Paper & Paper Products’ group declined by 0.1 percent to 155.5 (provisional) from 155.7 (provisional) for the previous month due to lower price of corrugated sheet boxes (2%) and printing and writing paper (1%).  However, the price of cream laid woven paper and newsprint (1% each) moved up.

The index for ‘Leather & Leather Products’ group rose by 0.3 percent to 145.2 (provisional) from 144.8 (provisional) for the previous month due to higher price of leathers (1%).

The index for ‘Rubber & Plastic Products’ group declined by 0.1 percent to 145.0 (provisional) from 145.2 (provisional) for the previous month due to lower price of tyres (1%).  However, the price of tubes (2%) moved up.

The index for ‘Chemicals & Chemical Products’ group declined by 0.1 percent to 149.5 (provisional) from 149.7 (provisional) for the previous month due to lower price of ammonium sulphate (4%) and photographic goods, pesticides,     rubber chemicals and basic organic chemicals (1% each).  However, the price of lacquer & varnishes (4%), synthetic resin (3%), hair / body oils (2%) and washing powder (1%) moved up.

The index for ‘Non-Metallic Mineral Products’ group declined by 0.5 percent to 177.7 (provisional) from 178.6 (provisional) for the previous month due to lower price of marbles (3%), asbestos corrugated sheet (2%) and railway sleeper, slag  cement and grey cement (1% each).  However, the price of polished granite (1%) moved up.

The index for ‘Basic Metals, Alloys & Metal Products’ group rose by 0.5 percent to 150.4 (provisional) from 149.6 (provisional) for the previous month due to higher price of gold & gold ornaments (7%), steel rods (5%), zinc and     pipes/tubes/rods/strips (2% each) and lead, silver, wire rods, ferro silicon and CRC (1% each).  However, the price of steel (5%),     iron castings and pig iron (2% each) and gp/gc sheets, billets, melting scrap, ferro manganese, joist & beams, steel structures and pencil  ingots (1% each) declined.

The index for ‘Machinery & Machine Tools’ group rose by 0.1 percent to 135.1 (provisional) from 134.9 (provisional) for the previous month due to higher price of fibre optic cable (4%), machine tools and grinding /wet coffee machinery (3% each), engines (2%) and ball/roller bearing and earth moving machinery (1% each).  However, the price of industrial  valves (2%) and insulators (1%) declined.

For the month of December, 2015, the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) stood at 176.8 as compared to 177.4 (provisional) and annual rate of inflation based on final index stood at -1.06 percent as compared to -0.73 percent (provisional) respectively as reported on 14.01.2016.