India inflation at 4-month low in June

The official Wholesale Price Index for ‘All Commodities’ (Base: 2004-05 = 100) for the month of June, 2014 rose by 0.5 percent to 182.6 (provisional) from 181.7 (provisional) for the previous month.

INFLATION

The annual rate of inflation, based on monthly WPI, stood at 5.43% (provisional) for the month of June, 2014 (over June,2013) as compared to 6.01% (provisional) for the previous month and 5.16% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 1.28% compared to a build up rate of 1.82% in the corresponding period of the previous year.

The movement of the index for the various commodity groups is summarized below:-

 PRIMARY ARTICLES (Weight 20.12%)

 The index for this major group rose by 1.3 percent to 249.9 (provisional) from 246.8 (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 2.2 percent to 249.7 (provisional) from 244.3 (provisional) for the previous month due to higher price of fruits & vegetables (6%), coffee (5%), masur (3%), poultry chicken, urad,      egg, pork, milk, condiments & spices and fish-marine (2% each) and rice, arhar and fish-inland (1% each).  However, the price of tea (3%), ragi and barley (2% each) and gram, wheat, bajra, jowar and moong (1% each) declined.

 The index for ‘Non-Food Articles’  group declined by 1.1 percent to 216.4 (provisional) from 218.8  (provisional) for the previous month due to lower price of soyabean (9%), gingelly seed and raw silk (7% each), tobacco and flowers (4% each), copra (coconut) (3%), linseed (2%) and raw cotton (1%).  However, the price of fodder and castor seed (4% each), cotton seed, niger seed, groundnut seed and sunflower (2% each) and raw jute, raw rubber and rape & mustard seed   (1% each) moved up.

 The index for ‘Minerals’ group declined by 0.8 percent to 345.6 (provisional) from 348.5 (provisional) for the previous month due to lower price of barytes (15%), phosphorite (9%), iron ore (2%) and crude petroleum and manganese ore (1% each).  However, the price of sillimanite (34%), magnesite (9%), steatite (4%), copper ore (3%) and chromite (1%) moved up.

 
FUEL & POWER (Weight 14.91%)

 The index for this major group rose by 0.1 percent to 212.3 (provisional) from 212.1  (provisional) for the previous month due to higher price of high speed diesel and lignite (1% each).  However, the price of aviation turbine fuel and bitumen (2% each) and kerosene (1%) declined.

  
MANUFACTURED PRODUCTS (Weight 64.97%)

 The index for this major group rose by 0.2 percent to 154.9 (provisional) from 154.6 (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 0.4 percent to 171.6 (provisional) from 170.9 (provisional) for the previous month due to higher price of gur (6%), copra oil (5%), salt (4%), maida and wheat flour (atta) (3% each),  oil cakes (2%) and sooji (rawa), ghee and rice bran oil (1% each).  However, the price of gingelly oil (4%) and      cotton seed oil, vanaspati, groundnut oil, tea leaf (blended), sunflower oil and gola (cattle feed) (1% each) declined.

 The index for ‘Beverages, Tobacco & Tobacco Products’ group declined by 0.1 percent to 197.4 (provisional) from 197.6 (provisional) for the previous month due to lower price of dried tobacco (6%).  However, the price of      rectified spirit (3%) and beer (1%) moved up.

 The index for ‘Textiles’ group rose by 0.8 percent to 143.9 (provisional) from 142.7 (provisional) for the previous month due to higher price of cotton yarn (2%) and cotton fabric, gunny and hessian cloth, man made fabric and woollen textiles (1% each).  However, the price of tyre cord fabric (2%) and jute yarn (1%) declined.

 The index for ‘Wood & Wood Products’ group declined by 0.7 percent to 187.0 (provisional) from 188.3 (provisional) for the previous month due to lower price of plywood & fibre board (2%).  However, the price of processed wood (2%) moved up.

 The index for ‘Paper & Paper Products’ group declined by 0.3 percent to 149.2 (provisional) from 149.7 (provisional) for the previous month due to lower price of paper for printing / poster (2%) and corrugated sheet boxes, paper rolls and printing and writing paper (1% each).

 The index for ‘Leather & Leather Products’ group rose by 0.6 percent to 145.6 (provisional) from 144.7 (provisional) for the previous month due to higher price of leather footwear and leathers (1% each).

 The index for ‘Rubber & Plastic Products’ group rose by 0.1 percent to 150.2 (provisional) from 150.1 (provisional) for the previous month due to higher price of plastic/pvc chappals (12%), v belt (4%), rubber brakes (3%), polyster chips and football (2% each) and hdpe bag (1%).  However, the prices of expendable polystyrene (4%) and hdpe woven fabric (2%) and plastic rolls (1%) declined.

 The index for ‘Chemicals & Chemical Products’ group rose by 0.3 percent to 153.3 (provisional) from 152.9 (provisional) for the previous month due to higher price of non-cyclic compound (4%), ammonium sulphate and explosives (3% each), antibiotics and pigment & pigment intermediates (2% each) and pesticides, basic inorganic chemicals, turpentine oil and antacid &  digestive preparations (1% each).  However, the price of rubber chemicals   (4%), dye & dye intermediates and basic organic chemicals (2% each) and synthetic resin, toilet soap (1% each) declined.

 The index for ‘Non-Metallic Mineral Products’ group declined by 0.5 percent to 167.3 (provisional) from 168.1 (provisional) for the previous month due to lower price of marbles and polished granite (4% each) and grey cement  (1%).  However, the price of bricks & tiles (1%) moved up.

 The index for ‘Basic Metals, Alloys & Metal Products’ group rose by 0.1 percent to 167.1 (provisional) from 166.9 (provisional) for the previous month due to higher price of steel (4%), ferro manganese (3%) and ferro chrome,     sheets, joist & beams, iron & steel wire, wire rods, angles, aluminium and steel castings (1% each).  However, the price of melting scrap (2%) and silver and gold & gold ornaments (1% each) declined.

 
The index for ‘Machinery & Machine Tools’ group rose by 0.4 percent to 133.8 (provisional) from 133.3 (provisional) for the previous month due to higher price of computers (6%), sprinkler (5%), ball/roller bearing,     fans and pvc insulated cable (4% each), grinding /wet coffee machinery and harvester (2% each) and fibre optic cable and boiler & accessories (1% each).  However, the price of insulators (2%) and batteries, electric switch gears and electrical pumps (1% each) declined.

 
FINAL INDEX FOR THE MONTH OF APRIL, 2014 (BASE YEAR: 2004-05=100)

 For the month of  April, 2014, the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) stood at 180.8 as compared to 180.2 (provisional) and annual rate of inflation based on final index stood at 5.55 percent as compared to 5.20 percent respectively as reported on 15.05.2014.