Acche Din! Wholesale inflation eases to four-month low of 4.53 % in August following cheaper food prices

New Delhi, September 15: India’s annual inflation based on wholesale price index (WPI) had eased to a four-month low of 4.53 percent in August on softening of prices of food articles, especially vegetables.

According to the government data, The annual rate of inflation, based on monthly WPI, stood at 4.53% (provisional) for the month of August, 2018 (over August, 2017) as compared to 5.09% (provisional) for the previous month and 3.24% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 3.18% compared to a build-up rate of 1.41% in the corresponding period of the previous year.”

PRIMARY ARTICLES (Weight 22.62%)

The index for this major group rose by 0.1 percent to 135.1 (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 rose by 0.1 percent to 144.8 (provisional) from 144.7 (provisional) for the previous month due to higher price of gram (6%), moong, ragi and bajra (4% each), urad, barley, wheat and tea (3% each), coffee, jowar and masur (2% each) and maize and rajma (1% each). However, the price of egg (6%), poultry chicken (5%), fish-inland (3%), peas/chawali, betel leaves and arhar (2% each) and beef & buffalo meat and pork (1% each) declined.

The index for ‘Non-Food Articles’ group rose by 1.2 percent to 125.0 (provisional) from 123.5 (provisional) for the previous month due to higher price of groundnut seed and guar seed (7% each), castor seed (4%), gingelly seed, raw rubber and floriculture (3% each), rape & mustard seed, raw wool, fodder, mesta and linseed (2% each) and cotton seed, raw jute, sunflower, safflower (kardi seed) and raw cotton (1% each). However, the price of soyabean (2%) and niger seed and hides (raw) (1% each) declined.

The index for ‘Minerals’ group declined by 4.9 percent to 123.2 (provisional) from 129.6 (provisional) for the previous month due to lower price of copper concentrate (15%), sillimanite (14%) and manganese ore (11%). However, the price of garnet (10%), zinc concentrate and lead concentrate (7% each), bauxite (6%), limestone (4%) and chromite and iron ore (1% each) moved up.

The index for ‘Crude Petroleum & Natural Gas’ group rose by 0.5 percent to 94.9 (provisional) from 94.4 (provisional) for the previous month due to higher price of crude petroleum (1%).

FUEL & POWER (Weight 13.15%)

The index for this major group rose by 0.5 percent to 104.9 (provisional) from 104.4 (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 0.8 percent to 98.3 (provisional) from 97.5 (provisional) for the previous month due to higher price of LPG (5%), petroleum coke (3%), kerosene and ATF (2% each) and naphtha and bitumen (1% each).

MANUFACTURED PRODUCTS (Weight 64.23%)

The index for this major group rose by 0.3 percent to 117.8 (provisional) from 117.4 (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’ remained unchanged at 129.0 (provisional). Rise in price was recorded for groundnut oil, cotton seed oil cake, sooji (rawa) and maida (5% each), wheat flour (atta) (4%), salt and gram powder (besan) (3), gur, honey, coffee powder with chicory, rice bran extract, molasses, mustard oil cake and spices (including mixed spices) (2% each) and cotton seed oil, ice cream, castor oil, rice products, fish frozen [canned/processed], instant coffee, biscuit, cookies and sunflower oil (1% each). While a decline in price was recorded for chicken/duck [dressed-fresh/frozen] and palm oil (3% each), condensed milk (2%) and fruit juice including concentrates, butter, basmati rice, processed tea and soya preparations excluding oil (1% each).

The index for ‘Manufacture of Beverages’ group rose by 0.3 percent to 120 (provisional) from 119.6 (provisional) for the previous month due to higher price of bottled mineral water, rectified spirit and beer (1% each).

The index for ‘Manufacture of Tobacco Products’ group rose by 0.5 percent to 150.1 (provisional) from 149.3 (provisional) for the previous month due to higher price of other tobacco products (2%). However, the price of cigarette (1%) declined.

The index for ‘Manufacture of Textiles’ group rose by 0.4 percent to 117.6 (provisional) from 117.1 (provisional) for the previous month due to higher price of manufacture of made-up textile articles, except apparel (2%) and synthetic yarn, texturised & twisted yarn, manufacture of knitted & crocheted fabrics and cotton yarn (1% each). However, the price of manufacture of other textiles (1%) declined.

The index for ‘Manufacture of Wearing Apparel’ group rose by 0.7 percent to 139.1 (provisional) from 138.2 (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 declined by 0.4 percent to 122.5 (provisional) from 123.0 (provisional) for the previous month due to lower price of belt & other articles of leather (4%) and chrome tanned leather (2%). However, the price of travel goods, handbags, office bags, etc. (2%) and waterproof footwear, vegetable tanned leather and canvas shoes (1% each) moved up.

The index for ‘Manufacture of Wood and of Products of Wood and Cork ‘ group rose by 0.6 percent to 132.8 (provisional) from 132.0 (provisional) for the previous month due to higher price of lamination wooden sheets/veneer sheets (2%) and plywood block boards (1%). However, the price of timber/wooden plank, sawn/resawn (1%) declined.

The index for ‘Manufacture of Paper and Paper Products’ group rose by 0.7 percent to 122.6 (provisional) from 121.8 (provisional) for the previous month due to higher price of press board and pulp board (3% each), corrugated sheet box (2%) and kraft paper, map litho paper, newsprint, corrugated paper board and paper for printing & writing (1% each). However, the price of card board, paper carton/box and laminated paper (1% each) declined.

The index for ‘Printing and Reproduction of Recorded Media’ group rose by 1.8 percent to 147.9 (provisional) from 145.3 (provisional) for the previous month due to higher price of printed books (3%) and printed labels/posters/calendars (1%). However, the price of sticker plastic (2%) and printed form & schedule (1%) declined.

The index for ‘Manufacture of Chemicals and Chemical Products’ group rose by 0.4 percent to 118.6 (provisional) from 118.1 (provisional) for the previous month due to higher price of ammonium sulphate and sodium silicate (4% each), epoxy [liquid], alcohols and phthalic anhydride (3% each), printing ink, di ammonium phosphate, organic chemicals, face/body powder, fungicide [liquid], soda ash/washing soda, polystyrene [expandable] and ammonia liquid (2% each) and polyester chips or polyethylene terepthalate (pet) chips, additive, mixed fertilizer, poly propylene (pp), ammonium phosphate, amine, carbon black, adhesive excluding gum, insecticide & pesticide, powder coating material, hydrogen peroxide, superphospate/phosphatic fertilizer, others, xlpe compound, agro chemical formulation, polyester film (metalized), camphor, dye stuff/dyes incl. dye intermediates & pigments/colours, alkyl benzene, acrylic fibre, tooth paste/tooth powder, other petrochemical intermediates and urea (1% each). However, the price of menthol (7%), organic surface active agent (5%), nitric acid (4%), polyester fibre fabric and sulphuric acid (3% each), gelatine, acetic acid & its derivatives, aromatic chemicals, organic solvent, ammonia gas and aniline (including pna, ona, ocpna) (2% each) and toilet soap, ammonium nitrate, rubber chemicals, ethylene oxide and paint (1% each) declined.

The index for ‘Manufacture of Pharmaceuticals, Medicinal Chemical and Botanical Products’ group rose by 1.4 percent to 123.5 (provisional) from 121.8 (provisional) for the previous month due to higher price of anti cancer drugs (14%), antibiotics & preparations there of (5%), anti-inflammatory preparation (4%), medical accessories and anti-malarial drugs (2% each) and antidiabetic drug excluding insulin (i.e. tolbutam), antipyretic, analgesic, anti-inflammatory formulations, ayurvedic medicaments and api & formulations of vitamins (1% each). However, the price of steroids & hormonal preparations (including anti-fungal preparations) (3%) and vials/ampoule, glass, empty or filled, anti-allergic drugs, simvastatin, plastic capsules and cotton wool (medicinal) (1% each) declined.

The index for ‘Manufacture of Rubber and Plastics Products’ group declined by 0.2 percent to 109.2 (provisional) from 109.4 (provisional) for the previous month due to lower price of rubber moulded goods (4%), elastic webbing and polypropylene film (3% each), polyester film (non-metalized), polythene film, plastic button, plastic box/container, plastic bag and solid rubber tyres/wheels (2% each) and rubberized dipped fabric, motor car tube, rubber cloth/sheet, v belt and plastic components (1% each). However, the price of rubber components & parts (4%), medium & heavy commercial vehicle tyre (3%), 2/3 wheeler tyre (2%) and tractor tyre, conveyer belt (fibre based), plastic furniture, rubber crumb, tooth brush, plastic tape and condoms (1% each) moved up.

The index for ‘Manufacture of Other Non-Metallic Mineral Products’ group rose by 0.2 percent to 115.9 (provisional) from 115.7 (provisional) for the previous month due to higher price of ordinary sheet glass and toughened glass (3% each), railway sleeper, glass bottle, porcelain sanitary ware, clinker, non-ceramic tiles and fibre glass incl. sheet (2% each) and cement blocks (concrete), ceramic tiles (vitrified tiles) and porcelain crockery (1% each). However, the price of white cement (2%) and poles & posts of concrete, asbestos corrugated sheet, slag cement, cement superfine and granite (1% each) declined.

The index for ‘Manufacture of Basic Metals’ group declined by 0.4 percent to 111.6 (provisional) from 112.1 (provisional) for the previous month due to lower price of aluminium alloys (7%), ferrochrome (4%), brass metal/sheet/coils, MS wire rods, angles, channels, sections, steel (coated/not) and gp/gc sheet (3% each), MS bright bars and aluminium powder (2% each) and alumnium foil, copper metal/copper rings, zinc metal/zinc blocks, stainless steel pencil ingots/billets/slabs, copper shapes - bars/rods/plates/strips, hot rolled (HR) coils & sheets, including narrow strip, rails, MS pencil ingots, aluminium shapes - bars/rods/flats, aluminium ingot, alloy steel wire rods, cold rolled (CR) coils & sheets, including narrow strip, sponge iron/direct reduced iron (DRI) and aluminium castings (1% each). However, the price of steel forgings - rough and silicomanganese (3% each), MS castings and ferromanganese (2% each) and alloy steel castings, stainless steel coils, strips & sheets, stainless steel tubes and other ferro alloys (1% each) moved up.

The index for ‘Manufacture of Fabricated Metal Products, Except Machinery and Equipment’ group rose by 0.8 percent to 115.5 (provisional) from 114.6 (provisional) for the previous month due to higher price of electrical stamping- laminated or otherwise and forged steel rings (3% each), steel structures, hose pipes in set or otherwise and steel door (2% each) and stainless steel utensils, steel pipes, tubes & poles, cylinders and bracket (1% each). However, the price of pressure cooker, stainless steel tank and copper bolts, screws, nuts (3% each), boilers (2%) and hand tools, stainless steel razor and jigs & fixture (1% each) declined.

The index for ‘Manufacture of Computer, Electronic and Optical Products’ group rose by 1.2 percent to 112.2 (provisional) from 110.9 (provisional) for the previous month due to higher price of laptops (10%), colour TV and air conditioner (2% each) and watch and sunglasses (1% each). However, the price of meter (non-electrical) (4%), electronic printed circuit board (PCB)/micro circuit (2%) and capacitors (1%) declined.

The index for ‘Manufacture of Machinery and Equipment’ group rose by 0.5 percent to 111.1 (provisional) from 110.5 (provisional) for the previous month due to higher price of chemical equipment & system, moulding machine, air or vacuum pump and agriculture implements (3% each), precision machinery equipment/form tools, pump sets without motor, drilling machine and grinding or polishing machine (2% each) and rice mill machinery, hydraulic pump, industrial valve, chillers, injection pump, clutches & shaft couplings, roller mill (raymond), mining, quarrying & metallurgical machinery/parts, harvesters, soil preparation & cultivation machinery (other than tractors) and deep freezers (1% each). However, the price of cranes (6%) and packing machine, gasket kit, sugar machinery, pharmaceutical machinery, oil pump, printing machinery, air gas compressor including compressor for refrigerator and hydraulic equipment (1% each) declined.

The index for ‘Manufacture of Motor Vehicles, Trailers and Semi-Trailers’ group rose by 0.7 percent to 113.3 (provisional) from 112.5 (provisional) for the previous month due to higher price of release valve (4%), seat for motor vehicles and shock absorbers (2% each) and passenger vehicles, body (for commercial motor vehicles), gear box & parts, radiators & coolers, engine, minibus/bus, chain and wheels/wheels & parts (1% each). However, the price of shafts of all kinds, brake pad/brake liner/brake block/brake rubber, others, cylinder liners and filter element (1% each) declined.

The index for ‘Manufacture of Other Transport Equipment’ group rose by 0.4 percent to 111.2 (provisional) from 110.8 (provisional) for the previous month due to higher price of tanker (2%) and bicycles of all types and motor cycles (1% each). However, the price of wagons (3%) declined.

The index for ‘Manufacture of Furniture’ group rose by 0.3 percent to 125.5 (provisional) from 125.1 (provisional) for the previous month due to higher price of iron/steel furniture and steel shutter gate (1% each).

The index for ‘Other Manufacturing’ group rose by 1.8 percent to 106.6 (provisional) from 104.7 (provisional) for the previous month due to higher price of stringed musical instruments (incl. santoor, guitars, etc.) (4%), cricket ball and plastic moulded-others toys (3% each) and gold & gold ornaments (2%). However, the price of non mechanical toys (8%) and silver (2%) 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 decreased from -0.86% in July, 2018 to -2.25% in August, 2018.

FINAL INDEX FOR THE MONTH OF JUNE, 2018 (BASE YEAR: 2011-12=100)

For the month of June, 2018, the final Wholesale Price Index for ‘All Commodities’ (Base: 2011-12=100) stood at 119.1 as compared to 119.2 (provisional) and annual rate of inflation based on final index stood at 5.68 percent as compared to 5.77 percent (provisional) respectively as reported on 16.07.2018.