India’s wholesale price inflation eases to 2.84% in January

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India’s annual rate of inflation based on the wholesale price index stood at 2.84 per cent in January, easing for the second straight month from an eight-month high touched in November, as food and fuel prices increased at a slower pace, official data released today showed.

Annual wholesale price inflation stood at 3.58 per cent in December, provisional data released by the commerce ministry showed.

The rate of inflation stood at 4.26 per cent during the corresponding month of the previous year.

Inflation rate for the primary articles group, which has a weight of 22.62 per cent of the wholesale price index (WPI) stood 1.5 per cent lower In January 2018.

For the ‘food articles’ group the inflation rate declined by 2.4 per cent due to lower prices of gram and fruits and vegetables, gram, ragi, jowar, bajra, maize, barley, urad, masur, rajma, peas, jowar and poultry chicken. However, the prices of betel leaves, fish, egg, condiments and spices, arhar, moong, paddy, sugarcane and wheat moved up.

For the ‘non-food articles’ it group rose 1.4 per cent due to higher prices of raw wool, guar seed, soyabean, raw silk and raw hides, safflower (kardi seed), raw jute, gingelly seed, raw cotton, copra (coconut) and coir fibre. However, the prices of castor seed and mesta, raw rubber and floriculture and linseed, niger seed and cotton seed declined.

For the ‘minerals’ group the inflation rate declined by 0.3 per cent due to lower prices of manganese ore and chromite. However, the prices of sillimanite, iron ore, lead concentrate and zinc concentrate and phosphorite moved up.

Inflation rate for the ‘crude petroleum and natural gas’ group rose 0.3 per cent due to higher price of crude petroleum. However, the price of natural gas declined.

Inflation rate for the ‘fuel and power group, which has a weight of 13.15 per cent in WPI, stood lower at 0.4 per cent in January 2018.

For the ‘Coal’ group it rose 2.4 per cent due to higher price of non-coking coal. However, the price of coking coal declined.

Inflation rate for the ‘mineral oils’ group rose 1.4 per cent due to higher prices of HSD, kerosene, furnace oil, bitumen, petrol, naphtha and ATF. However, the price of petroleum coke and LPG declined.

For the ‘electricity’ group, inflation rate declined by 3.5 per cent due to lower price of electricity.

Inflation rate for the ‘manufactured group’, which has a weight of 64.23 per cent in the WPI, rose 0.6 per cent in January 2018.

Inflation rate for the ‘manufacture of food products’ group declined by 0.5 per cent due to lower prices of molasses, gram powder (besan), sugar, meats (preserved/processed), processed and preserved fish, crustaceans, molluscs and products thereof, macaroni, noodles, couscous and similar products, gur, chicken/duck, dressed-fresh/frozen, castor oil, bagasse, buffalo meat (fresh/frozen), groundnut oil, rice bran oil, condensed milk, processed tea, ghee, powder milk, spices (including mixed spices), processing and preserving of fruit and vegetables, manufacture of processed ready to eat food, coffee powder with chicory, manufacture of prepared animal feeds and honey.  However, the prices of soyabean oil, wheat bran, rice products, vanaspati, sunflower oil and salt and cotton seed oil, starches and starch products, bakery products, copra oil, palm oil and sooji (rawa ) moved up.

Inflation rate for the ‘manufacture of beverages’ group rose 0.2 per cent due to higher prices of wine and aerated drinks/soft drinks (including soft drink concentrates). However, the price of rectified spirit and bottled mineral water declined.

Inflation rate for the ‘manufacture of tobacco products’ group declined by 0.5 per cent due to lower price of other tobacco products. However, the prices of cigarette and biri moved up.

Inflation rate for the ‘manufacture of wearing apparel’ group declined by 0.3 per cent due to lower prices of knitted and crocheted apparel.

Inflation rate for the ‘manufacture of leather and related products’ group rose 0.3 per cent due to higher prices of gloves of leather, leather shoe and waterproof footwear. However, the price of belt and other articles of leather, canvas shoes and chrome tanned leather declined.

Inflation rate for the ‘manufacture of wood and of products of wood and cork ‘ group rose by 0.4 per cent due to higher price of wooden block-compressed or not, lamination wooden sheets/veneer sheets and wood cutting, processed/sized. However, the price of wooden box/crate and timber/wooden plank, sawn/resawn declined.

Inflation rate for the ‘manufacture of paper and paper products’ group rose 2.5 per cent due to higher price of corrugated sheet box, tissue paper, paper carton/box, laminated paper, base paper, hard board, map litho paper, pulp board, kraft paper and card board. However, the price of paper bag, including craft paper bag, corrugated paper board and newsprint declined.

Inflation rate for the ‘printing and reproduction of recorded media’ group rose 0.6 per cent due to higher prices of hologram, printed labels/posters/calendars, printed books, newspaper and printed form schedule.

Inflation rate for the ‘manufacture of chemicals and chemical products’ group rose 0.9 per cent due to higher prices of carbon black, acetic acid and its derivatives, camphor, sulphuric acid, caustic soda (sodium hydroxide), nitric acid, menthol and amine, ammonia liquid, ammonium sulphate and mono ethyl glycol, epoxy, liquid and toilet soap, catalysts, adhesive tape (non-medicinal) and XLPE compound, ammonia gas, creams and lotions for external application, ethyl acetate, ammonium nitrate, polyester film (metalised) and polyester chips or polyethylene terepthalate (PET) chips and hydrogen peroxide, polyethylene, mixed fertilizer, phthalic anhydride, ethylene oxide, organic chemicals, other petrochemical intermediates, dye stuff/dyes (including dye intermediates and pigments/colours, oleoresin, powder coating material, explosive, insecticide and pesticide, plasticiser, sodium silicate, organic solvent, other inorganic chemicals, soda ash/washing soda and poly vinyl chloride (PVC).  However, the price of tooth paste/tooth powder, shampoo and detergent cake, washing soap cake/bar/powder, phosphoric acid, nitrogenous fertilizer, others, additive, rubber chemicals, gelatine, adhesive excluding gum, agro chemical formulation and paint declined.

Inflation rate for the ‘manufacture of pharmaceuticals, medicinal chemical and botanical products’ group declined by 1.1 per cent due to lower prices of anti-malarial drugs, anti allergic drugs, antibiotics and preparations thereof, vials/ampoule, glass (empty or filled), ayurvedic medicaments and API and formulations of vitamins. However, the prices of anti cancer drugs, antidiabetic drug (excluding insulin, ie, tolbutam), simvastatin and antioxidants, antipyretic, analgesic, anti-inflammatory formulations and antiseptics and disinfectants moved up.

Inflation rate for the ‘manufacture of rubber and plastics products’ group rose 0.3 per cent due to higher price of 2/3 wheeler rubber tube, polythene film, V belt, conveyer belt (fibre based), plastic furniture, rubberized dipped fabric, plastic tube (flexible/non-flexible), medium and heavy commercial vehicle tyre, PVC fittings and other accessories, rubber cloth/sheet, plastic tank, plastic button, rubber crumb, plastic film, polyester film (non-metalized), rubber tread and rubber moulded goods. However, the prices of tooth brush, 2/3 wheeler tyre, processed rubber, rubber components and parts, tractor tyre, polypropylene film, elastic webbing, plastic box/container, acrylic/plastic sheet, solid rubber tyres/wheels and plastic tape declined.

Inflation rate for the ‘manufacture of other non-metallic mineral products’ group rose 2.2 per cent due to higher prices of graphite rod, porcelain sanitary ware, marble slab, asbestos corrugated sheet and fibre glass (incl. sheet), cement (superfine), granite, railway sleeper, clinker, ordinary portland cement and lime and calcium carbonate. However, the prices of cement blocks (concrete), ordinary sheet glass, ceramic tiles (vitrified tiles) and non ceramic tiles, poles and posts of concrete, stone, chip and plain bricks declined.

Inflation rate for the ‘manufacture of basic metals’ group rose 3.7 per cent due to higher prices of MS bright bars, sponge iron/direct reduced iron (DRI), angles, channels, sections, steel (coated/not), alloy steel wire rods, MS pencil ingots, hot rolled (HR) coils and sheets (including narrow strip), cold rolled (CR) coils and sheets (including narrow strip), GP/GC sheet, MS wire rods and mild steel (MS) blooms, zinc metal/zinc blocks, pig iron and aluminium ingot, silicomanganese, stainless steel tubes, aluminium alloys, ferrosilicon, stainless steel bars and rods (including flats), aluminium shapes-bars/rods/flats, copper metal/copper rings, ferromanganese, brass metal/sheet/coils, ferrochrome, galvanised iron pipes, MS castings and aluminium metal. However, the prices of stainless steel coils, strips and sheets and alloy steel castings declined.

Inflation rate for the ‘manufacture of fabricated metal products, except machinery and equipment’ group rose 0.9 per cent due to higher prices of iron/steel hinges, bolts, screws, nuts and nails of iron and steel and pressure cooker, stainless steel utensils, forged steel rings, steel structures, steel container and metal cutting tools and accessories and electrical stamping – laminated or otherwise, steel pipes, tubes and poles, hose pipes in set or otherwise and jigs and fixture. However, the prices of sanitary fittings of iron and steel, lock/padlock and aluminium utensils declined.

Inflation rate for the ‘manufacture of computer, electronic and optical products’ group rose 0.3 per cent due to higher prices of scientific time keeping devices, and air conditioners, colour TVs, watches and electronic printed circuit boards /micro circuits. However, the prices of sunglasses and electro-diagnostic apparatus, used in medical, surgical, dental or veterinary sciences declined.

Inflation rate for the ‘manufacture of electrical equipment’ group rose 0.1 per cent due to higher prices of jelly filled cables, solenoid valve, PVC insulated cable, rotor/magneto rotor assembly, AC motor, aluminium/alloy conductor and fan, meter panel, copper wire, flourescent tube, electric and other meters, generators and alternators, incandescent lamps, electric accumulators and batteries. However, the prices of rubber insulated cables, light fitting accessories, insulator, ACSR conductors, electric welding machine, insulating and flexible wire, electric switch gear control/starter, electric wires and cables and aluminium wire declined.

Inflation rate for the ‘manufacture of machinery and equipment’ group declined by 1.0 per cent due to lower prices of agricultural tractors, conveyors-non-roller type,  pressure vessel and tank for fermentation and other food processing, separators, machinery used in the milling industry, chillers, gasket kit, hydraulic equipment, furnaces and ovens, excavator and sugar machinery. However, the prices of cranes, road roller, open-end spinning machinery, agriculture implements, pneumatic tools, pump sets without motor and pharmaceutical machinery and precision machinery equipment/form tools, motor starter, rice mill machinery, roller and ball bearings, manufacture of bearings, gears, gearing and driving elements, air filters, mixing machine, printing machinery and mining, quarrying & metallurgical machinery/parts moved up.

Inflation rate for the ‘manufacture of motor vehicles, trailers and semi-trailers’ group rose 0.4 per cent due to higher prices of seat for motor vehicles, head lamps, cylinder liners, wheels and parts, filter element, radiators and coolers and chain. However, the prices of brake pad/brake liner/brake block/brake rubber, others, crankshaft and shafts of all kinds and engine declined.

Inflation rate for the ‘manufacture of other transport equipment’ group rose 1.0 per cent due to higher prices of motor cycles, propellers and blades of boats/ships and tanker.

Inflation rate for the ‘manufacture of furniture’ group rose 0.5 per cent due to higher prices of wooden furniture, plastic fixtures and iron/steel furniture and steel shutter gate. However, the price of foam and rubber mattress declined.

Inflation rate for the ‘other manufacturing’ group declined by 6.7 per cent due to lower prices of gold and gold ornaments. However, the prices of stringed musical instruments (incl. santoor, guitars, etc) and playing cards 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 with a combined weight of 24.38 per cent in the WPI decreased from 2.91 per cent in December 2017 to 1.65 per cent in January 2018.

The final inflation rate for November 2017, based on the final wholesale price index for ‘all commodities’ (Base: 2011-12=100) stood at 4.02 per cent against 3.93 per cent reported earlier.

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