Inflation based on Nov WPI rises to 3.93 per cent on annual basis

The official Wholesale Price Index for ‘All Commodities’ (Base: 2011-12=100) for the month of November, 2017 rose by 0.7 percent to 116.3 (provisional) from 115.5 (provisional) for the previous month, according to the Union Ministry of Commerce and Industry.

The rise in November inflation has been attributed to an increase in the price of onions and other vegetables.

Excerpts from the release published by the Ministry of Commerce and Industry:

PRIMARY ARTICLES (Weight 22.62%): The index for this major group rose by 1.6 percent to 135.6 (provisional) from 133.4 (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 1.8 percent to 150.6 (provisional) from 148.0 (provisional) for the previous month due to higher price of betel leaves (12%), egg (11%), fruits & vegetables (7%) and fish-marine, beef & buffalo meat, pork,  condiments & spices and wheat (1% each).  However, the price of ragi and gram (7% each), maize and jowar (4% each), urad and rajma (3% each), arhar, peas/chawali, masur, bajra and moong (2% each) and poultry chicken and barley (1% each) declined.

The index for ‘Non-Food Articles’ group declined by 1.9 percent to 116.9 (provisional) from 119.2 (provisional) for the previous month due to lower price of tanning materials (35%), fodder (10%), raw rubber, raw silk and raw jute (4% each), skins (raw), castor seed and soyabean (3% each), mesta and coir fibre (2% each) and safflower (kardi seed), guar seed and hides (raw) (1% each).  However, the price of copra (coconut) (3%), raw wool, floriculture, cotton seed and gingelly seed (2% each) and rape & mustard seed and raw cotton (1% each) moved up.

The index for ‘Minerals’ group rose by 7.0 percent to 129.3 (provisional) from 120.8 (provisional) for the previous month due to higher price of iron ore (14%), copper concentrate (12%), lead concentrate (4%), zinc concentrate (3%), manganese ore (2%) and phosphorite (1%).   However, the price of sillimanite (12%) and bauxite (3%) declined.

The index for ‘Crude Petroleum & Natural Gas’ group rose by 6.7 percent to 74.5 (provisional) from 69.8 (provisional) for the previous month due to higher price of crude petroleum (10%).

FUEL & POWER (Weight 13.15%): The index for this major group rose by 1.6 percent to 95.0 (provisional) from 93.5 (provisional) for the previous month The groups and items which showed variations during the month are as follows:

The index for ‘Coal’ group rose by 0.1 percent to 117.6 (provisional) from 117.5 (provisional) for the previous month due to higher price of lignite (1%).

The index for ‘Mineral Oils’ group rose by 2.9 percent to 84.6 (provisional) from 82.2 (provisional) for the previous month due to higher price of LPG (12%), naphtha (7%), bitumen and furnace oil (3% each), ATF, HSD and petroleum coke (2% each) and petrol (1%).

MANUFACTURED PRODUCTS (Weight 64.23%): The index for this major group rose by 0.2 percent to 113.9 (provisional) from 113.7 (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 declined by 0.3 percent to 127.9 (provisional) from 128.3 (provisional) for the previous month due to lower price of molasses (13%), gram powder (besan) (7%), bagasse (6%), gur (5%),  manufacture of macaroni, noodles, couscous & similar farinaceous products and processing & preserving of fish, crustaceans & molluscs & products thereof (3% each), coffee powder with chicory, manufacture of health supplements, ice cream, instant coffee, ghee, rice, non-basmati and powder milk (2% each) and rice products, groundnut oil, buffalo meat, fresh/frozen, sooji (rawa), other meats, preserved/processed, cotton seed oil, manufacture of starches & starch products and processed tea (1% each).  However, the price of copra oil and spices (including mixed spices) (5% each), palm oil (3%), rice bran oil, luoresce and chicken/duck, dressed-fresh/frozen (2% each) and wheat flour (atta), wheat bran, mustard oil, sunflower oil and castor oil (1% each) moved up.

The index for ‘Manufacture of Beverages’ group rose by 0.4 percent to 119.5 (provisional) from 119.0 (provisional) for the previous month due to higher price of spirits and aerated drinks/soft drinks (incl. soft drink concentrates) (1% each). However, the price of rectified spirit and bottled mineral water (1% each) declined.

The index for ‘Manufacture of Tobacco Products’ group rose by 4.3 percent to 155.3 (provisional) from 148.9 (provisional) for the previous month due to higher price of cigarette (9%) and other tobacco products and biri (2% each).

The index for ‘Manufacture of Textiles’ group rose by 0.3 percent to 113.5 (provisional) from 113.2 (provisional) for the previous month due to higher price of  weaving & finishing of textiles (2%) and synthetic yarn, luore yarn, luorescen & twisted yarn and viscose yarn (1% each).  However, the price of cotton yarn and manufacture of cordage, rope, twine & netting (2% each), and manufacture of knitted & crocheted fabrics (1%) declined.

The index for ‘Manufacture of Wearing Apparel’ group rose by 0.3 percent to 137.5 (provisional) from 137.1 (provisional) for the previous month due to higher price of manufacture of knitted & crocheted apparel (1%).

The index for ‘Manufacture of Leather and Related Products’ group rose by 0.3 percent to 119.5 (provisional) from 119.1 (provisional) for the previous month due to higher price of gloves of leather (3%), chrome tanned leather (2%) and harness, saddles & other related items, travel goods, handbags, office bags, etc., canvas shoes and leather shoe (1% each).  However, the price of belt & other articles of leather (9%) and waterproof footwear (1%) declined.

The index for ‘Manufacture of Wood and of Products of Wood & Cork ‘ group declined by 0.5 percent to 131.6 (provisional) from 132.3 (provisional) for the previous month due to lower price of plywood block boards (2%) and lamination wooden sheets/veneer sheets (1%).  However, the price of timber/wooden plank, sawn/resawn (3%) and wood cutting, processed/sized and particle boards (1% each) moved up.

The index for ‘Manufacture of Paper and Paper Products’ group declined by 1.3 percent to 118.1 (provisional) from 119.6 (provisional) for the previous month due to lower price of corrugated sheet box (7%), tissue paper (5%), paper carton/box (4%), laminated plastic sheet (2%) and paper for printing & writing (1%).  However, the price of paper bag including craft paper bag (5%), duplex paper (4%) and corrugated paper board and hard board (1% each) moved up.

The index for ‘Printing and Reproduction of Recorded Media ‘ group declined by 0.4 percent to 142.5 (provisional) from 143.1 (provisional) for the previous month due to lower price of hologram (3d) (3%), journal/periodical and printed labels/posters/calendars (2% each) and printed form & schedule (1%).  However, the price of printed books (1%) moved up.

The index for ‘Manufacture of Chemicals and Chemical Products’ group rose by 0.4 percent to 112.2 (provisional) from 111.7 (provisional) for the previous month due to higher price of acetic acid and its derivatives (12%), sulphuric acid (11%), creams & lotions for external application (9%), camphor and menthol (7% each), caustic soda (sodium hydroxide) and phosphoric acid (6% each), epoxy, liquid (5%), carbon black, ethyl acetate and plasticizer (4% each), nitrogenous fertilizer, others, organic solvent, amine, alcohols, ammonia liquid and aniline (including pna, ona, ocpna) (3% each), polyester chips or polyethylene luorescente (pet) chips, tooth paste/tooth powder, ammonium sulphate, soda ash/washing soda, additive, foundry chemical, dye stuff/dyes incl. dye intermediates & pigments/colours, xlpe compound and other petrochemical intermediates (2% each) and liquid air & other gaseous products, other inorganic chemicals, powder coating material, alkyl benzene, toilet soap, poly propylene (pp), polyester fibre fabric, organic surface active agent, mono ethyl glycol, detergent cake, washing soap cake/bar/powder, varnish (all types), viscose staple fibre and polyester film(metalized) (1% each).  However, the price of luores (8%), shampoo (7%), sodium silicate (5%), oleoresin (4%), paint (3%), adhesive tape (non-medicinal), agarbatti and phthalic anhydride (2% each) and aromatic chemicals, superphospate/phosphatic fertilizer, others, explosive, polystyrene, expandable, adhesive excluding gum, di ammonium phosphate, nitric acid, insecticide and pesticide, organic chemicals, printing ink and ammonium nitrate (1% each) declined.

The index for ‘Manufacture of Pharmaceuticals, Medicinal Chemical and Botanical Products’ group declined by 0.4 percent to 121.6 (provisional) from 122.1 (provisional) for the previous month due to lower price of antidiabetic drug excluding insulin (i.e. tolbutam) (14%) and simvastatin (1%).  However, the price of anti inflammatory preparation (8%), cotton wool (medicinal) (5%), vaccine for hepatitis-B (4%), plastic capsules and vials/ampoule, glass, empty or filled (2% each) and antipyretic, analgesic, anti-inflammatory formulations, ayurvedic medicaments and antioxidants (1% each) moved up.

The index for ‘Manufacture of Other Non-Metallic Mineral Products’ group declined by 0.4 percent to 111.4 (provisional) from 111.8 (provisional) for the previous month due to lower price of plain bricks (4%), non ceramic tiles (3%), clinker (2%) and cement blocks (concrete), asbestos corrugated sheet, electric insulating material, ceramic tiles (vitrified tiles), slag cement, marble slab and glass bottle (1% each).   However, the price of porcelain sanitary ware, granite, stone, chip, porcelain crockery and white cement (1% each) moved up.

The index for ‘Manufacture of Basic Metals’ group rose by 0.3 percent to 101.0 (provisional) from 100.7 (provisional) for the previous month due to higher price of alloy steel castings (10%), aluminium alloys (4%), copper shapes- bars/rods/plates/strips, steel forgings – rough, rails, copper metal/copper rings, stainless steel tubes, aluminium shapes – bars/rods/flats and ms bright bars (2% each) and aluminium disk and circles, luoresc foil, stainless steel coils, strips & sheets, cold rolled (CR) coils & sheets, including narrow strip, ferrochrome, aluminium powder, lead ingots, bars, blocks, plates, aluminium metal, MS pencil ingots, angles, channels, sections, steel (coated/not) and stainless steel bars & rods, including flats (1% each).  However, the price of other ferro alloys and MS castings (2% each) and aluminium ingot, gp/gc sheet, cast iron, castings, ferromanganese and galvanized iron pipes (1% each) declined.

The index for ‘Manufacture of Fabricated Metal Products, Except Machinery and Equipment’ group rose by 2.1 percent to 111.1 (provisional) from 108.8 (provisional) for the previous month due to higher price of cylinders (6%), stainless steel razor (5%), stainless steel utensils and hand tools (4% each), lock/padlock (3%), stainless steel tank, steel container, pressure cooker and copper bolts, screws, nuts (2% each) and steel drums and barrels, forged steel rings, electrical stamping- laminated or otherwise and bolts, screws, nuts & nails of iron & steel (1% each).  However, the price of metal cutting tools & accessories (5%) and steel structures (1%) declined.

The index for ‘Manufacture of Computer, Electronic and Optical Products’ group declined by 1.3 percent to 110.3 (provisional) from 111.8 (provisional) for the previous month due to lower price of colour TV (4%), meter (non-electrical) (2%) and capacitors, scientific time keeping device, watch and air conditioner (1% each).  However, the price of sunglasses (2%) moved up.

The index for ‘Manufacture of Electrical Equipment’ group declined by 0.2 percent to 110.0 (provisional) from 110.2 (provisional) for the previous month due to lower price of fibre optic cables (6%), electric welding machine (4%), connector/plug/socket/holder-electric (3%), insulator, amplifier and incandescent lamps (2% each) and pvc insulated cable, aluminium wire, insulating & flexible wire, generators & alternators, electric switch gear control/starter and dry cells such as torch light batteries (1% each).  However, the price of motors & other dc equipment (15%), copper wire (6%), ACSR conductors (4%), electric wires & cables (3%), electric & other meters and jelly filled cables (2% each) and batteries, solenoid valve, electrical relay/conductor, electrical resistors (except heating resistors), rubber insulated cables, rotor/magneto rotor assembly, luorescent tube and washing machines/laundry machines (1% each) moved up.

The index for ‘Manufacture of Machinery and Equipment’ group rose by 0.3 percent to 109.4 (provisional) from 109.1 (provisional) for the previous month due to higher price of pressure vessel and tank for fermentation & other food processing and hydraulic equipment (5% each), excavator and rice mill machinery (3% each), roller and ball bearings, gasket kit,  manufacture of bearings, gears, gearing & driving elements and chemical equipment & system (2% each) and air filters, pharmaceutical machinery, sugar machinery, air or vacuum pump, threshers and air gas compressor including compressor for refrigerator (1% each).  However, the price of dumper (8%), conveyors – non-roller type and precision machinery equipment/form tools (5% each), drilling machine (4%), grinding or polishing machine and chillers (2% each) and motor starter, industrial valve, oil pump, lathes, hydraulic pump and sewing machines (1% each) declined.

The index for ‘Manufacture of Motor Vehicles, Trailers and Semi-Trailers’ group declined by 0.2 percent to 110.4 (provisional) from 110.6 (provisional) for the previous month due to lower price of passenger vehicles, radiators & coolers and minibus/bus (1% each).  However, the price of body (for commercial motor vehicles) (5%) and chain, crankshaft, engine and shafts of all kinds (1% each) moved up.

The index for ‘Manufacture of Other Transport Equipment’ group rose by 0.9 percent to 110.8 (provisional) from 109.8 (provisional) for the previous month due to higher price of motor cycles (1%).  However, the price of propellers & blades of boats/ships (1%) declined.

The index for ‘Manufacture of Furniture’ group declined by 1.7 percent to 122.5 (provisional) from 124.6 (provisional) for the previous month due to lower price of foam and rubber mattress (12%).  However, the price of wooden furniture (3%) and iron/steel furniture, plastic fixtures and hospital furniture (1% each) moved up.

The index for ‘Other Manufacturing’ group rose by 2.0 percent to 108.7 (provisional) from 106.6 (provisional) for the previous month due to higher price of intraocular lens (3%), gold & gold ornaments (2%) and plastic moulded-others toys (1%).  However, the price of stringed musical instruments (incl. santoor, guitars, etc.), playing cards and silver (2% each) and sports goods of rubber (incl. balls) (1%) declined.

WPI FOOD INDEX (Weight 24.38%) : The rate of inflation based on WPI Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group increased from 3.23% in October, 2017 to 4.10% in November, 2017.

For the month of September, 2017, the final Wholesale Price Index for ‘All Commodities’ (Base: 2011-12=100) stood at 114.9 as compared to 114.3 (provisional) and annual rate of inflation based on final index stood at 3.14 percent as compared to 2.60 percent (provisional) respectively as reported on Oct 16, 2917.