The official Wholesale Price Index for ‘All Commodities’ (Base : 2011-12=100) for the month of October, 2019 rose by 0.7% to 122.2 (provisional) from 121.3 (provisional) for the previous month.
INFLATION
The annual rate of inflation, based on monthly WPI, stood at 0.16% (provisional) for the month of October, 2019 (over October, 2018) as compared to 0.33% (provisional) for the previous month and 5.54% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 1.92% compared to a build up rate of 4.90% in the corresponding period of the previous year.
Inflation for important commodities / commodity groups is indicated in Annex-1 and Annex-II.The movement of the index for the various commodity group is summarized below:-
PRIMARY ARTICLES (Weight 22.62%)
The index for this major group rose by 2.1% to 146 (provisional) from 143 (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 3.2% to 160.2 (provisional) from 155.3 (provisional) for the previous month due to higher price of fruits & vegetables (11%), egg and pork (4% each), urad, tea and wheat (2% each) and rajma, condiments & spices, fish-marine, poultry chicken, gram and moong (1% each). However, the price of bajra (6%), ragi (3%) and maize and barley (1% each) declined.
The index for ‘ Non-Food Articles’ group declined by 0.3% to 126.3 (provisional) from 126.7 (provisional) for the previous month due to lower price of castor seed (15%), raw rubber (9%), gaur seed (5%), raw cotton (4%), skins (raw) and soyabean (3% each), hides (raw) (2%) and groundnut seed and coir fibre (1% each). However, the price of floriculture (14%), raw silk (9%), niger seed (5%), safflower (kardi seed) (4%), gingelly seed (sesamum) (3%), raw jute (2%) and sunflower and rape & mustard seed (1% each) moved up.
The index for ‘Minerals’ group declined by 3.2% to 158.4 (provisional) from 163.6 (provisional) for the previous month due to lower price of copper concentrate (5%), limestone (3%) and iron ore, manganese ore and chromite (1% each). However, the price of lead concentrate (1%) moved up.
The index for ‘Crude Petroleum & Natural Gas’ group declined by 0.7% to 85.8 (provisional) from 86.4 (provisional) for the previous month due to lower price of natural gas (8%). However, the price of crude petroleum (3%) moved up.
FUEL & POWER (Weight 13.15%)
The index for this major group rose by 1.9% to 102.1 (provisional) from 100.2 (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 2.8% to 93.0 (provisional) from 90.5 (provisional) for the previous month due to higher price of furnace oil (9%), bitumen and naphtha (6% each), ATF and kerosene (3% each), petrol and HSD (2% each) and LPG (1%).
The index for ‘Electricity’ group rose by 1.6% to 110 (provisional) from 108.3 (provisional) for the previous month due to higher price of electricity (2%).
MANUFACTURED PRODUCTS (Weight 64.23%)
The index for this major group remained unchanged at its previous month level of 117.9. 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% to 134.5 (provisional) from 133.6 (provisional) for the previous month due to higher price of honey (6%), powder milk (4%), palm oil (3%), salt, copra oil, chicken/duck, dressed – fresh/frozen, mustard oil, wheat flour (atta) and spices (including mixed spices) (2% each) and manufacture of cocoa, chocolate and sugar confectionery, manufacture of health supplements, ice cream, maida, soyabean oil, rice bran oil, processing and preserving of fish, crustaceans and molluscs and products thereof, sooji (rawa), gur, manufacture of bakery products and butter (1% each). However, the price of castor oil (9%), molasses (8%), coffee powder with chicory (4%), processed tea (2%) and manufacture of processed ready to eat food and instant coffee (1% each) declined.
The index for ‘Manufacture of Beverages’ group declined by 0.6% to 123.4 (provisional) from 124.1 (provisional) for the previous month due to lower price of aerated drinks/soft drinks (incl. soft drink concentrates) (2%). However, the price of bottled mineral water (1%) moved up.
The index for ‘Manufacture of Tobacco Products’ group rose by 0.8% to 155.2 (provisional) from 154.0 (provisional) for the previous month due to higher price of other tobacco products (2%).
The index for ‘Manufacture of Textiles’ group declined by 0.2% to 117.7 (provisional) from 117.9 (provisional) for the previous month due to lower price of synthetic yarn, manufacture of made-up textile articles, except apparel, cotton yarn, texturised and twisted yarn and manufacture of knitted and crocheted fabrics (1% each). However, the price of manufacture of cordage, rope, twine and netting (2%) and weaving & finishing of textiles (1%) moved up.
The index for ‘Manufacture of Wearing Apparel’ group declined by 0.4% to 138.4 (provisional) from 138.9 (provisional) for the previous month due to lower price of manufacture of wearing apparel (woven), except fur apparel (1%).
The index for ‘Manufacture of Leather And Related Products’ group declined by 0.2% to 118.6 (provisional) from 118.8 (provisional) for the previous month due to lower price of chrome tanned leather and plastic/PVC chappals (1% each). However, the price of belt & other articles of leather, harness, saddles & other related items, waterproof footwear, vegetable tanned leather and leather shoe (1% each) moved up.
The index for ‘Manufacture of Wood And of Products of Wood and Cork ‘ group rose by 0.3% to 134.4 (provisional) from 134.0 (provisional) for the previous month due to higher price of wooden splint (8%), wooden box/crate (3%) and plywood block boards (1%). However, the price of wooden block – compressed or not (3%) and lamination wooden sheets/veneer sheets (1%) declined.
The index for ‘Manufacture of Paper and Paper Products’ group declined by 0.5% to 120.3 (provisional) from 120.9 (provisional) for the previous month due to lower price of tissue paper (3%), kraft paper, paper for printing & writing, base paper and laminated paper (2% each) and bristle paper board, poster paper, newsprint, pulp board and corrugated paper board (1% each). However, the price of paper bag including craft paper bag (7%) and corrugated sheet box (2%) moved up.
The index for ‘Printing and Reproduction of Recorded Media ‘ group rose by 2.5% to 153.2 (provisional) from 149.4 (provisional) for the previous month due to higher price of journal/periodical (9%) and printed form & schedule and sticker plastic (1% each). However, the price of newspaper (1%) declined.
The index for ‘Manufacture of Chemicals and Chemical Products’ group declined by 0.4% to 117.4 (provisional) from 117.9 (provisional) for the previous month due to lower price of caustic soda (sodium hydroxide) (7%), camphor, carbon black, sulphuric acid and poly propylene (PP) (5% each), amine (4%), ammonium sulphate (3%), powder coating material, other inorganic chemicals, adhesive tape (non-medicinal), mono ethyl glycol, aromatic chemicals, phosphoric acid and soda ash/washing soda (2% each) and organic chemicals, acrylic fibre, polyester chips or polyethylene terepthalate (pet) chips, di ammonium phosphate, menthol, fatty acid, polyethylene, additive, shampoo, polyester film(metalized, polyester fibre fabric, epoxy, liquid, polystyrene, expandable and organic surface active agent (1% each). However, the price of gelatine (6%), agro chemical formulation, oleoresin, ethyl acetate, tooth paste/tooth powder, adhesive excluding gum, hydrogen peroxide, ammonia gas, dye stuff/dyes incl. dye intermediates and pigments/colours, catalysts, sodium silicate and alkyl benzene (2% each) and acetic acid and its derivatives, ethylene oxide, ammonium phosphate, insecticide and pesticide, explosive, organic solvent, alcohols and ammonia liquid (1% each) moved up.
The index for ‘Manufacture of Pharmaceuticals, Medicinal Chemical and Botanical Products’ group rose by 0.2% to 125.9 (provisional) from 125.6 (provisional) for the previous month due to higher price of cotton wool (medicinal) and API & formulations of vitamins (1%). However, the price of anti-retroviral drugs for HIV treatment (3%), vials/ampoule, glass, empty or filled and antipyretic, analgesic, anti-inflammatory formulations (2% each) and anti cancer drugs and vaccine for polio (1% each) declined.
The index for ‘Manufacture of Rubber and Plastics Products’ group rose by 0.2% to 108.3 (provisional) from 108.1 (provisional) for the previous month due to higher price of processed rubber (4%), plastic bag, rubber components & parts and plastic box/container (2% each) and plastic components, conveyer belt (fibre based), plastic film and condoms (1% each). However, the price of tooth brush (3%), elastic webbing, plastic bottle and polythene film (2% each) and medium & heavy commercial vehicle tyre, rubber cloth/sheet, 2/3 wheeler rubber tube, tractor tyre, thermocol, plastic tank, plastic furniture, polyester film (non-metalized), rubber crumb, cycle/cycle rickshaw tyre, solid rubber tyres/wheels, rubber tread and plastic tape (1% each) declined.
The index for ‘Manufacture of Other Non-Metallic Mineral Products’ group declined by 0.9% to 115.8 (provisional) from 116.8 (provisional) for the previous month due to lower price of ordinary sheet glass, glass bottle and graphite rod (6% each), electric insulating material and toughened glass (2% each) and poles & posts of concrete, stone, chip, granite and plain bricks (1% each). However, the price of cement superfine (3%), cement blocks (concrete) (2%) and porcelain sanitary ware, railway sleeper, non ceramic tiles, white cement and fibre glass incl. sheet (1% each) moved up.
The index for ‘Manufacture of Basic Metals’ group declined by 1.1% to 103.6 (provisional) from 104.8 (provisional) for the previous month due to lower price of stainless steel pencil ingots/billets/slabs (5%), ferromanganese and other ferro alloys (4% each), silicomanganese, hot rolled (HR) coils & sheets, including narrow strip, brass metal/sheet/coils nad GP/GC sheet (3% each), steel cables, cold rolled (CR) coils & sheets, including narrow strip, ferrochrome, aluminium alloys, pig iron, alloy steel wire rods, angles, channels, sections, steel (coated/not), aluminium shapes – bars/rods/flats and MS bright bars (2% each) and steel forgings – rough, aluminium ingot, rails, zinc metal/zinc blocks, mild steel (MS) blooms, ferrosilicon, copper metal/copper rings and galvanized iron pipes (1% each). However, the price of alloy steel castings (3%) and MS pencil ingots, lead ingots, bars, blocks, plates and MS castings (1% each) moved up.
The index for ‘Manufacture of Fabricated Metal Products, Except Machinery and Equipment’ group declined by 0.1% to 115.0 (provisional) from 115.1 (provisional) for the previous month due to lower price of aluminium utensils (7%), forged steel rings (3%), steel drums and barrels, hand tools, bracket, metal cutting tools & accessories, stainless steel tank and steel container (2% each) and pressure cooker, electrical stamping- laminated or otherwise, iron/steel cap and jigs & fixture (1% each). However, the price of sanitary fittings of iron & steel (6%), cylinders (3%), iron/steel hinges (2%) and boilers (1%) moved up.
The index for ‘Manufacture of Computer, Electronic and Optical Products’ group declined by 0.3% to 109.8 (provisional) from 110.1 (provisional) for the previous month due to lower price of colour TV, watch and air conditioner (1% each). However, the price of electro-diagnostic apparatus, used in medical, surgical, dental or veterinary sciences (3%) and meter (non-electrical) and electronic printed circuit board (PCB)/micro circuit (2% each) moved up.
The index for ‘Manufacture of Electrical Equipment’ group rose by 0.6% to 111.2 (provisional) from 110.5 (provisional) for the previous month due to higher price of electric accumulators (4%), jelly filled cables and refrigerators (3%), fibre optic cables, transformer, ACSR conductors and domestic gas stove (2% each) and incandescent lamps, insulating & flexible wire, connector/plug/socket/holder-electric, electrical resistors (except heating resistors), electric switch, flourescent tube and copper wire (1% each). However, the price of electric welding machine (2%) and electric switch gear control/starter, solenoid valve, rotor/magneto rotor assembly, electric mixers/grinders/food processors, insulator, PVC insulated cable, aluminium/alloy conductor, aluminium wire and electric filament type lamps (1% each) declined.
The index for ‘Manufacture of Machinery and Equipment’ group declined by 1.0% to 112.8 (provisional) from 113.9 (provisional) for the previous month due to lower price of air filters (8%), machinery used in the milling industry (3%), air or vacuum pump, cranes, precision machinery equipment/form tools, pharmaceutical machinery and excavator (2% each) and sugar machinery, open end spinning machinery, chemical equipment & system, dumper, injection pump and industrial valve (1% each). However, the price of moulding machine, water purifier, loader, sewing machines, air gas compressor including compressor for refrigerator and threshers (1% each) moved up.
The index for ‘Manufacture of Motor Vehicles, Trailers and Semi-Trailers’ group rose by 1.5% to 114.6 (provisional) from 112.9 (provisional) for the previous month due to higher price of seat for motor vehicles (17%), engine (4%), crankshaft and silencer and damper (2% each) and chain, wheels/wheels & parts, shafts of all kinds, passenger vehicles, chassis of different vehicle types and minibus/bus (1% each). However, the price of cylinder liners (3%) and brake pad/brake liner/brake block/brake rubber, others (2%) declined.
The index for ‘Manufacture of Furniture’ group declined by 1.1% to 130.8 (provisional) from 132.2 (provisional) for the previous month due to lower price of foam and rubber mattress (4%), plastic fixtures (2%) and hospital furniture (1%).
The index for ‘Other Manufacturing’ group rose by 2.5% to 116.7 (provisional) from 113.8 (provisional) for the previous month due to higher price of non mechanical toys (9%), gold & gold ornaments (3%), silver (2%) and table tennis table (1%). However, the price of stringed musical instruments (incl. santoor, guitars, etc.) (6%), playing cards (2%) and cricket ball and cricket bat (1% each) 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 5.98% in September, 2019 to 7.65% in October, 2019.
FINAL INDEX FOR THE MONTH OF AUGUST, 2019 (BASE YEAR:2011-12=100)
For the month of August, 2019, the final Wholesale Price Index for ‘All Commodities’ (Base: 2011-12=100) stood at 121.5 as compared to 121.4 (provisional) and annual rate of inflation based on final index stood at 1.17% as compared to 1.08% (provisional) respectively as reported on 16.09.2019.
