Wholesale inflation eases, but potato still high

According to the data released on Tuesday, the annual rate of inflation, based on monthly WPI, stood at 2.38% for the month of September, 2014 as compared to 3.74% for the previous month and 7.05% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 2.61% compared to a build up rate of 6.23% in the corresponding period of the previous year.

The index for ‘Essential Items’ group declined by 1.3 percent to 258.2 from 261.7 for the previous month. The index for `Food Articles` group declined by 1.4 percent to 261.8 from 265.4 for the previous month due to lower price of tea and fruits & vegetables (5% each), maize (4%), poultry chicken and fish-marine (3% each) and condiments & spices, jowar, pork and moong (1% each).  However, the price of potato, which moved higher, still remains a worry for common people. Egg and coffee (4% each), fish-inland and barley (3% each), masur and arhar (2% each) and rice, bajra, gram, ragi and urad (1% each) also moved up.

The index for `Non-Food Articles` group declined by 2.0 percent to 214.3 from 218.7 for the previous month due to lower price of flowers (17%), safflower (kardi seed) (16%), soyabean (13%), raw rubber (8%), gingelly seed (5%), mesta, copra (coconut) and raw cotton (3% each), linseed and castor seed (2% each) and coir fibre (1%).  However, the price of fodder (8%), groundnut seed (6%), guar seed (5%), niger seed (4%) and raw silk (1%) moved up.

The index for `Minerals` group rose by 0.1 percent to 347.3 (provisional) from 347.0 (provisional) for the previous month due to higher price of chromite (3%), iron ore and steatite (2% each).  However, the price of barytes (21%), sillimanite (9%), copper ore (4%), manganese ore (3%) and zinc concentrate (1%) declined.

The index for Fuel and Power group declined by 0.3 percent to 213.4 from 214.0 for the previous month due to lower price of petrol (4%), bitumen (2%) and aviation turbine fuel and furnace oil (1% each).  However, the price of lubricants (4%) and high speed diesel (1%) moved up.

The index for `Food Products` group rose by 0.2 percent to 175.1 from 174.7 for the previous month due to higher price of powder milk (8%), tea leaf (blended) (5%), ghee (3%), bakery products (2%) and groundnut oil and oil cakes (1% each).  However, the price of tea dust (unblended) (5%), gram powder (besan), rice bran oil and vanaspati (2% each) and sunflower oil, gur, gingelly oil, soyabean oil, sugar, wheat flour (atta) and palm oil (1% each) declined.

The index for `Beverages, Tobacco & Tobacco Products` group rose by 0.7 percent to 201.0 from 199.6 for the previous month due to higher price of cigarette (3%).  However, the price of chewing tobacco (scented or not) (5%) declined.

The index for `Textiles` group declined by 0.1 percent to 144.1 from 144.2 for the previous month due to lower price of jute sacking cloth (3%) and cotton yarn (1%).  However, the price of  jute yarn (5%), jute sacking bag (2%) and gunny and hessian cloth, man made fibre and man made fabric (1% each) moved up.

The index for `Wood & Wood Products` group rose by 0.4 percent to 186.1 from 185.4 for the previous month due to higher price of plywood & fibre board (1%).

The index for `Paper & Paper Products` group rose by 0.3 percent to 150.0 from 149.6 for the previous month due to higher price of paper rolls (6%), laminated paper (2%) and paper cartons/boxes (1%).  However, the price of books/ periodicals/ journals (2%) declined.

The index for `Leather & Leather Products` group declined by 0.1 percent to 146.6 from 146.7 for the previous month due to lower price of footwear/safety boot and other leather footwear (1% each).  However, the price of leather garments & jackets (1%) moved up.

The index for `Rubber & Plastic Products` group rose by 0.2 percent to 151.2 from 150.9 for the previous month due to higher price of hdpe woven fabric (8%), tooth brush (4%), plastic containers and rubber transmission belt (3% each), polyester chips (2%) and plastic/pvc chappals, hdpe woven sacks and reclaimed rubber (1% each).  However, the prices of plastic /pvc pipe, plastic/pvc suitcases, expandable polystyrene and plastic rolls (1% each) declined.  

The index for `Chemicals & Chemical Products` group declined by 0.3 percent to 153.6 from 154.1 for the previous month due to lower price of synthetic resin (3%), vitamins (2%) and organic manure, non-cyclic compound, basic organic chemicals, rubber chemicals and castor oil (1% each).  However, the price of dye & dye intermediates and distemper (2% each) moved up.

The index for `Non-Metallic Mineral Products` group rose by  0.8  percent to 170.8 from 169.5 for the previous month due to higher price of asbestos corrugated sheet (4%), white cement (3%), marbles and grey cement (1% each).  However, the price of slag cement (1%) declined.

The index for `Basic Metals, Alloys & Metal Products` group declined by 0.4 percent to 165.8 from 166.4 for the previous month due to lower price of gold & gold ornaments, zinc, silver and pencil  ingots (2% each) and wire rods, steel rods, billets, crc, pig iron and steel castings (1% each).  However, the price of furniture, sponge iron, ferro-manganese, melting scrap and pressure cooker (1% each) moved up.

The index for `Machinery & Machine Tools` group rose by  0.1 percent to 134.6 from 134.5 for the previous month due to higher price of fibre optic cable (3%), ball/roller bearing and electric generators (2% each) and textile machinery, machine tools, electric motors and control equipments (1% each).  However, the price of battery dry cells (11%), pump & assembly (3%) and boiler & accessories, communication equipments, insulators and conductor (1% each) declined.

The index for ` Transport, Equipment & Parts ` group rose by  0.1  percent to 136.1 from 136.0 for the previous month due to higher price of gauges (5%), geared motor (2%) and gear boxes & parts and suspension (1% each).  However, the price of trolleys/tanker, wheels & parts and wiper/blade/arm etc (1% each) declined.