Food inflation pushes up India's wholesale price index

The official Wholesale Price Index (WPI) for ‘All Commodities’ (Base: 2004-05=100) for July rose by 1.0 per cent to 183.9 (provisional) from 182.0 (provisional) for the previous month.

According to the published data, annual rate of inflation, based on monthly WPI, stood at 3.55 per cent (provisional) for the month of July, 2016 (over July, 2015) compared to 1.62 per cent (provisional) in June and minus 4 per cent in July 2015.

Build up inflation rate in the financial year so far was 4.91 per cent compared to a build up rate of 0.85 per cent in the corresponding period of the previous year.

Excerpts from the data published by the department:

Primary Articles (Weight 20.12%)

The index for this major group rose by 2.5 per cent to 269.5 (provisional) from 262.8 (provisional) for the previous month. The groups and items which showed variations during the month are as follows:

The index for ‘Food Articles’ group rose by 2.4 per cent to 285.8 (provisional) from 279.0 (provisional) for the previous month due to higher price of gram (20%), fruits & vegetables (7%), egg (5%), maize (3%), barley (2%) and coffee, beef & buffalo meat, jowar, wheat, urad, rice, masur and pork (1% each).  However, the price of poultry chicken (5%), ragi (4%), moong, mutton, bajra and tea (2% each) and fish-inland and fish-marine (1% each) declined.

The index for ‘Non-Food Articles’ group rose by 2.3 per cent to 236.6 (provisional) from 231.2 (provisional) for the previous month due to higher price of raw cotton (13%), guar seed (10%), castor seed and raw rubber (7% each), linseed and cotton seed (5% each), raw wool and rape & mustard seed (3% each) and niger seed, safflower (kardi seed) and groundnut seed (1% each).  However, the price of gingelly seed (7%), flowers (5%), soyabean (4%), raw jute (2%) and mesta (1%) declined.

The index for ‘Minerals’ group rose by 5.0 per cent to 208.9 (provisional) from 199.0 (provisional) for the previous month due to higher price of manganese ore (12%), crude petroleum (9%),  iron ore and copper ore (2% each).  However, the price of sillimanite (12%), zinc concentrate (4%), chromite (2%) and phosphorite (1%) declined.

Fuel and Power (Weight 14.91%)

The index for this major group rose by 0.8 per cent to 187.9 (provisional) from 186.5 (provisional) for the previous month due to higher price of non-coking coal (15%), aviation turbine fuel (7%) and furnace oil (5%).  However, the price of petrol (3%) and bitumen (1%) declined.

Manufactured Products (Weight 64.97%)

The index for this major group rose by 0.3 per cent to 156.4 (provisional) from 156.0 (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 1.2 percent to 189.2 (provisional) from 186.9 (provisional) for the previous month due to higher price of tea leaf (unblended) (8%), tea dust (unblended) (5%), wheat flour (atta) (4%), gur and sooji (rawa) (3% each), maida, groundnut oil, khandsari, sugar and tea dust (blended) (2% each) and ghee, mustard & rapeseed oil and oil cakes (1% each).  However, the price of coffee powder (5%) and copra oil, gola (cattle feed), vanaspati and sunflower oil (1% each) declined.

The index for ‘Textiles’ group rose by 0.4 per cent to 141.5 (provisional) from 140.9 (provisional) for the previous month due to higher price of jute sacking cloth and cotton yarn (2% each) and man made fabric (1%).  However, the price of gunny and hessian cloth (2%) declined.

The index for ‘Wood & Wood Products’ group declined by 0.3 per cent to 196.1 (provisional) from 196.6 (provisional) for the previous month due to lower price of timber/wooden planks (2%) and processed wood (1%).  However, the price of  plywood & fibre board (1%) moved up.

The index for ‘Paper & Paper Products’ group rose by 0.5 per cent to 156.7 (provisional) from 155.9 (provisional) for the previous month due to higher price of corrugated sheet boxes (3%), books/ periodicals/ journals (2%) and newsprint (1%).
However, the price of computer stationery (1%) declined.

The index for ‘Leather & Leather Products’ group rose by 0.5 per cent to 146.3 (provisional) from 145.5 (provisional) for the previous month due to higher price of leathers (1%).

The index for ‘Rubber & Plastic Products’ group rose by 0.3 per cent to 146.5 (provisional) from 146.1 (provisional) for the previous month due to higher price of tubes (5%) and rubber products (2%).

The index for ‘Chemicals & Chemical Products’ group rose by 0.1 per cent to 151.1 (provisional) from 150.9 (provisional) for the previous month due to higher price of tooth paste / tooth powder (8%) and hair/body oils, photographic goods,  pesticides and basic inorganic chemicals (1% each).  However, the price of di ammonium phosphate and lacquer & varnishes (1% each) declined.

The index for ‘Non-Metallic Mineral Products’ group rose by  0.5 per cent to 178.6 (provisional) from 177.7 (provisional) for the previous month due to higher price of marbles (4%) and glass bottles & bottleware, grey cement and lime (1% each).  However, the price of railway sleeper and asbestos corrugated sheet (2% each) declined.

The index for ‘Basic Metals, Alloys & Metal Products’ group declined by 0.6 per cent to 153.0 (provisional) from 153.9 (provisional) for the previous month due to lower price of pig iron and melting scrap (5% each), billets (4%), wire rods   (3%), rounds, angles, CRC, sponge iron, ferro manganese, pencil  ingots, rebars, joist & beams, HRC and plates (2% each) and gp/gc sheets, pipes/tubes/rods/strips and sheets (1% each).  However, the price of silver (6%), steel rods (5%), lead and steel structures (4% each), gold & gold ornaments (2%) and steel castings, pressure cooker, metal containers and zinc (1% each) moved up.

The index for ‘Transport, Equipment & Parts’ group rose by 0.1 per cent to 139.6 (provisional) from 139.4 (provisional) for the previous month due to higher price of lamp (1%).

For May, 2016, the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) stood at 180.2 compared to 179.4 (provisional) and annual rate of inflation based on final index stood at 1.24 per cent as compared to 0.79 per cent (provisional), respectively, as reported on June 14, 2016.