Wholesale inflation drops to 2.6% in September

Inflation on the basis of the wholesale price index (WPI) moved up to  a four-month high of 3.24% in August 2017. It was 1.36% in September 2016.

"The annual rate of inflation, based on monthly WPI, stood at 2.60% (provisional) for the month of September, 2017 (over September,2016) as compared to 3.24% (provisional) for the previous month and 1.36% during the corresponding month of the previous year," read a government statement.

"Build up inflation rate in the financial year so far was 0.97% compared to a build up rate of 3.44% in the corresponding period of the previous year," it said.

The index for this major group declined by 3 percent to 130.8 (provisional) from 134.9 (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 4 percent to 144.8 (provisional) from 150.8 (provisional) for the previous month due to lower price of fruits & vegetables (15%), betel leaves (6%), ragi (4%), bajra (3%), pork, maize and tea (2% each) and poultry chicken (1%).  However, the price of gram (10%), arhar (3%), masur, urad and fish-inland (2% each) and jowar, egg, barley, condiments & spices and peas/chawali (1% each) moved up.

The index for 'Non-Food Articles' group declined by 0.2 percent to 120.3 (provisional) from 120.6 (provisional) for the previous month due to lower price of floriculture (10%), groundnut seed (5%), raw cotton (3%) and linseed (1%). However, the price of copra (coconut) (12%), raw silk (10%), sunflower and guar seed (4% each), raw jute, gingelly seed and raw rubber (3% each), raw wool and soyabean (2% each) and castor seed, skins (raw), rape & mustard seed, mesta, coir fibre and safflower (kardi seed) (1% each) moved up.

The index for 'Minerals' group rose by 1.1 percent to 119.5 (provisional) from 118.2 (provisional) for the previous month due to higher price of copper concentrate (6%), manganese ore (2%) and limestone (1%).  However, the price of chromite (24%), iron ore (4%), zinc concentrate and phosphorite (2% each) and lead concentrate (1%) declined.

The index for this major group rose by 1.7 percent to 90.7 (provisional) from 89.2 (provisional) for the previous month. The groups and items which showed variations during the month are as follows:-

The index for 'Mineral Oils' group rose by 3.3 percent to 79.1 (provisional) from 76.6 (provisional) for the previous month due to higher price of LPG (10%), naphtha (8%), ATF (5%), petrol (3%), furnace oil, kerosene and HSD (2% each) and bitumen (1%).  However, the price of petroleum coke (1%) declined.

The index for this major group rose by 0.4 percent to 113.4 (provisional) from 112.9 (provisional) for the previous month. The groups and items which showed variations during the month are as follows:-

The index for 'Manufacture of Food Products' group rose by 0.7 percent to 128.2 (provisional) from 127.3 (provisional) for the previous month due to higher price of copra oil (7%), processing & preserving of fish, crustaceans & molluscs & products thereof and gram powder (besan) (4% each), basmati rice (3%), salt, bagasse, rice bran oil, manufacture of health supplements, processed tea, powder milk, gur and ghee (2% each) and rice, non-basmati, castor oil, ice cream, soyabean oil, butter, palm oil, cotton seed oil, maida, sunflower oil, vanaspati and rice products (1% each).  However, the price of other meats, preserved/processed and honey (5% each), molasses and chicken/duck, dressed - fresh/frozen (4% each), groundnut oil (3%), buffalo meat, fresh/frozen and manufacture of cocoa, chocolate & sugar confectionery (2% each) and instant coffee, manufacture of prepared animal feeds, processing & preserving of fruit & vegetables, wheat bran, mustard oil, manufacture of macaroni, noodles, couscous & similar farinaceous products (1% each) declined.

The index for 'Manufacture of Beverages' group rose by 0.8 percent to 120.1 (provisional) from 119.1 (provisional) for the previous month due to higher price of bottled mineral water and aerated drinks/soft drinks (incl. soft drink concentrates) (2% each) and country liquor, beer and wine (1% each).

The index for 'Manufacture of Tobacco Products' group rose by 2.2 percent to 150.9 (provisional) from 147.7 (provisional) for the previous month due to higher price of cigarette (6%) and other tobacco products (1%).  However, the price of biri (2%) declined.

The index for 'Manufacture of Textiles' group rose by 0.6 percent to 113.4 (provisional) from 112.7 (provisional) for the previous month due to higher price of texturised and twisted yarn (2%) and weaving & finishing of textiles, manufacture of cordage, rope, twine & netting and cotton yarn (1% each).  However, the price of viscose yarn (3%) and manufacture of knitted and crocheted fabrics (2%) declined.

The index for 'Manufacture of Wearing Apparel' group rose by 0.1 percent to 136.6 (provisional) from 136.5 (provisional) for the previous month due to higher price of trouser/pants made of cotton and/or mad-made fibre (2%).  However, the price of manufacture of knitted and crocheted apparel (1%) declined.

The index for 'Manufacture of Leather and Related Products' group declined by 1.4 percent to 119.2 (provisional) from 120.9 (provisional) for the previous month due to lower price of chrome tanned leather (4%) and leather shoe (1%). However, the price of belt & other articles of leather (3%), vegetable tanned leather and harness, saddles & other related items (2% each) and canvas shoes and travel goods, handbags, office bags, etc. (1% each) moved up.

The index for 'Manufacture of Wood and of Products of Wood and Cork ' group rose by 0.2 percent to 132.4 (provisional) from 132.1 (provisional) for the previous month due to higher price of wooden block - compressed or not (2%) and plywood block boards and wooden box/crate (1% each).  However, the price of timber/wooden plank, sawn/resawn and wood cutting, processed/sized (1% each) declined.

The index for 'Manufacture of Paper and Paper Products' group rose by 0.7 percent to 119.3 (provisional) from 118.5 (provisional) for the previous month due to higher price of tissue paper (8%), corrugated sheet box (4%), paper bag including craft paper bag (3%), card board box, hard board and poster paper (2% each) and paper for printing & writing and newsprint (1% each).  However, the price of corrugated paper board (4%) and duplex paper, laminated plastic sheet, paper carton/box and map litho paper (1% each) declined.

The index for 'Printing and Reproduction of Recorded Media' group rose by 0.2 percent to 144.6 (provisional) from 144.3 (provisional) for the previous month due to higher price of printed labels/posters/calendars (6%), hologram (3d) (4%) and newspaper (1%).  However, the price of printed form & schedule, journal/periodical and sticker plastic (1% each) declined.

The index for 'Manufacture of Chemicals and Chemical Products' group rose by 0.1 percent to 111.3 (provisional) from 111.2 (provisional) for the previous month due to higher price of mono ethyl glycol (10%), ammonia gas (5%), plasticizer (4%), aniline (including pna, ona, ocpna), carbon black, gelatine, nitric acid, ethylene oxide and phthalic anhydride (3% each), powder coating material, epoxy, liquid, polyester film(metalized), sodium silicate, organic surface active agent and adhesive tape (non-medicinal) (2% each) and creams & lotions for external application, polyethylene, ammonium sulphate, mixed fertilizer, caustic soda (sodium hydroxide), soda ash/washing soda, alcohols, polystyrene, expandable, foundry chemical, polyester chips or polyethylene terepthalate (pet) chips, polyester fibre fabric, camphor, aromatic chemicals and  printing ink (1% each).  However, the price of fungicide, liquid (21%), mosquito coil (7%), sulphuric acid (6%), oleoresin (5%), toilet soap and perfume/scent (3% each), alkyl benzene, fatty acid, agro chemical formulation, ammonia liquid, acetic acid and its derivatives and superphospate/phosphatic fertilizer, others (2% each) and ammonium phosphate, dye stuff/dyes incl. dye intermediates and pigments/colours, rubber chemicals, tooth paste/tooth powder, shampoo, other inorganic chemicals, detergent cake, washing soap cake/bar/powder, xlpe compound, additive, catalysts, amine, organic solvent and organic chemicals (1% each) declined.

The index for 'Manufacture of Pharmaceuticals, Medicinal Chemical and Botanical Products' group rose by 0.5 percent to 121.5 (provisional) from 120.9 (provisional) for the previous month due to higher price of vaccine for hepatitis b (13%), vials/ampoule, glass, empty or filled (11%), sulpha drugs (8%), anti-malarial drugs (6%), anti allergic drugs, plastic capsules, simvastatin and antipyretic, analgesic, anti-inflammatory formulations (4% each) and antibiotics & preparations thereof (2%). However, the price of anti cancer drugs (9%), antioxidants (3%), steroids and hormonal preparations (including anti-fungal preparations) and anti-retroviral drugs for hiv treatment (2% each) and ayurvedic medicaments, digestive enzymes and antacids and cotton wool (medicinal) (1% each) declined.

The index for 'Manufacture of Rubber and Plastics Products' group declined by 0.4 percent to 106.8 (provisional) from 107.2 (provisional) for the previous month due to lower price of pvc fittings & other accessories (10%), condoms (6%), v belt and tooth brush (5% each), rubber moulded goods (4%), solid rubber tyres/wheels (2%) and plastic furniture, plastic components and medium & heavy commercial vehicle tyre (1% each).  However, the price of rubberized dipped fabric (5%), rubber cloth/sheet (4%), acrylic/plastic sheet and thermocol (3% each), processed rubber, 2/3 wheeler tyre, plastic bottle and plastic tank (2% each) and plastic box/container, 2/3 wheeler rubber tube, conveyer belt (fibre based), polyester film (non-metalized), plastic button, rubber tread, rubber tubes- not for tyres, tractor tyre, plastic tube (flexible/non-flexible) and plastic film (1% each) moved up.

The index for 'Manufacture of Basic Metals' group rose by 2.7 percent to 100.4 (provisional) from 97.8 (provisional) for the previous month due to higher price of gp/gc sheet (8%), pig iron (7%), ms pencil ingots, cold rolled (CR) coils & sheets, including narrow strip, hot rolled (HR) coils & sheets, including narrow strip and other ferro alloys (5% each), mild steel (ms) blooms and copper shapes-bars/rods/plates/strips (4% each), sponge iron/direct reduced iron (DRI), silicomanganese, ferrochrome, stainless steel pencil ingots/billets/slabs, ms castings, copper metal/copper rings, stainless steel coils, strips & sheets, ferrosilicon and zinc metal/zinc blocks (3% each), aluminium disk and circles, aluminium shapes-bars/rods/flats, stainless steel tubes, angles, channels, sections, steel (coated/not), ms wire rods, brass metal/sheet/coils and aluminium ingot (2% each) and alloy steel wire rods, galvanized iron pipes, aluminium metal, aluminium powder, rails, lead ingots, bars, blocks, plates and steel forgings-rough (1% each).  However, the price of aluminium alloys (3%) and alloy steel castings (2%) declined.

The index for 'Manufacture of Fabricated Metal Products, Except Machinery and Equipment' group rose by 0.9 percent to 108.5 (provisional) from 107.5 (provisional) for the previous month due to higher price of iron/steel cap (8%), electrical stamping-laminated or otherwise (5%), bracket (4%), hand tools (3%), stainless steel tank, metal cutting tools & accessories and cylinders (2% each) and bolts, screws, nuts & nails of iron & steel, steel structures, steel drums and barrels, steel door, lock/padlock, steel pipes, tubes & poles, steel container and jigs & fixture (1% each). However, the price of forged steel rings (7%), aluminium utensils (4%), stainless steel razor (4%) and copper bolts, screws, nuts and pressure cooker (1% each) declined.

The index for 'Manufacture of Computer, Electronic and Optical Products' group rose by 0.3 percent to 109.2 (provisional) from 108.9 (provisional) for the previous month due to higher price of colour tv (4%), sunglasses (3%) and electro-diagnostic apparatus, used in medical, surgical, dental or veterinary sciences (1%).  However, the price of meter (non-electrical) (3%), x-ray equipment and scientific time keeping device (2% each) and ups in solid state drives and electronic printed circuit board (pcb)/micro circuit (1% each) declined.

The index for 'Manufacture of Electrical Equipment' group rose by 0.8 percent to 110.2 (provisional) from 109.3 (provisional) for the previous month due to higher price of connector/plug/socket/holder-electric (6%), pvc insulated cable, electric wires & cables and dry cells such as torch light batteries (4% each), aluminium/alloy conductor, copper wire and acsr conductors (3% each), fibre optic cables, jelly filled cables, flourescent tube, aluminium wire and electric switch gear control/starter (2% each) and transformer, generators & alternators, electrical resistors (except heating resistors), electric mixers/grinders/food processors, rubber insulated cables and insulator (1% each).  However, the price of domestic gas stove (6%), electric accumulators (4%), microwave oven and solenoid valve (2% each) and electric switch, light fitting accessories, washing machines/laundry machines and a c motor (1% each) declined.

The index for 'Manufacture of Machinery and Equipment' group declined by 0.2 percent to 108.2 (provisional) from 108.4 (provisional) for the previous month due to lower price of pressure vessel and tank for fermentation & other food processing (13%), deep freezers (6%), steam turbines (5%), sugar machinery and water purifier (3% each), roller mill (raymond), packing machine, air or vacuum pump and industrial valve (2% each) and open end spinning machinery, excavator, threshers, grinding or polishing machine, lathes, conveyors- non-roller type, machinery for plastic products- extruded and air gas compressor including compressor for refrigerator (1% each). However, the price of cranes (9%), injection pump (5%), rice mill machinery and mixing machine (4% each), precision machinery equipment/form tools and chemical equipment & system (3% each), oil pump, printing machinery and mining, quarrying & metallurgical machinery/parts (2% each) and agricultural tractors, pump sets without motor and evaporator (1% each) moved up.

The index for 'Manufacture of Motor Vehicles, Trailers and Semi-Trailers' group declined by 1.3 percent to 110.5 (provisional) from 111.9 (provisional) for the previous month due to lower price of filter element (9%), passenger vehicles (7%) and shock absorbers, piston ring/piston and compressor and shafts of all kinds (1% each).  However, the price of ignition device, steering gear control system, silencer and damper, chain, release valve, head lamp, gear box and parts, brake pad/brake liner/brake block/brake rubber, others and radiators & coolers (1% each) moved up.

The index for 'Manufacture of other Transport Equipment' group rose by 0.1 percent to 109.6 (provisional) from 109.5 (provisional) for the previous month due to higher price of wagons (6%) and auto rickshaw/tempo/matador/three wheelers (1%).  However, the price of tanker (1%) declined.

The index for 'Manufacture of Furniture' group rose by 0.5 percent to 120.1 (provisional) from 119.5 (provisional) for the previous month due to higher price of steel shutter gate (4%) and iron/steel furniture and foam and rubber mattress (1% each).  However, the price of wooden furniture (2%) declined.

The index for 'Other Manufacturing' group declined by 7.4 percent to 105.3 (provisional) from 113.7 (provisional) for the previous month due to lower price of gold & gold ornaments (8%) and playing cards and cricket bat (2% each).  However, the price of stringed musical instruments (incl. santoor, guitars, etc.) (9%), silver (5%) and plastic moulded-others toys and non mechanical toys (3% each) moved up.

The rate of inflation based on WPI Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group decreased from 4.41% in August, 2017 to 1.99% in September, 2017.

For the month of July, 2017, the final Wholesale Price Index for ‘All Commodities’ (Base: 2011-12=100) and annual rate of inflation remained unchanged at its provisional level of 113.9 and 1.88 percent respectively as reported on 14.08.2017.

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