India’s wholesale inflation rises to 6.55% in February; hits 39 month high
 Source : News Bharati English  Date : 14-Mar-2017

New Delhi, February 14: India’s annual rate of Inflation based on monthly Wholesale Price Index, stood at 6.55% for the month of February 2017 as compared to 5.25% reported for January 2017. Notably, the wholesale prices in India accelerated to their highest levels in three years and three months in February driven mainly by costlier fuel, government data showed Tuesday.
Notably, the annual rate of inflation, based on monthly WPI, stood at 6.55% (provisional) for the month of February 2017 (over February 2016) as compared to 5.25% (provisional) for the previous month and -0.85% during the corresponding month of the previous year.  Build up inflation rate in the financial year so far was 5.82% compared to a build up rate of -1.14% in the corresponding period of the previous year.

PRIMARY ARTICLES (Weight 20.12%)

The index for this major group rose by 0.9 percent to 258.1 (provisional) from 255.7 (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 267.5 (provisional) from 267.2  (provisional) for the previous month due to higher price of fruits & vegetables (5%), jowar and poultry chicken (2% each) and rice, bajra, fish-inland, ragi and beef & buffalo meat (1% each).  However, the price of gram (14%), arhar (7%), condiments & spices (6%), urad (5%), tea and masur (3% each), egg, moong and maize (2% each) and wheat and coffee (1% each) declined.

The index for  ‘Non-Food Articles’  group rose by 1.5 percent to 234.8 (provisional) from 231.3 (provisional) for the previous month due to higher price of flowers (13%), copra (coconut) (9%), raw rubber (8%), raw silk (4%), raw cotton (3%), gingelly seed (2%) and coir fibre, fodder, safflower (kardi seed), niger seed and cotton seed (1% each).  However, the price of linseed, rape & mustard seed, soyabean and mesta (2% each) and sunflower, raw wool, groundnut seed, hides (raw) and castor seed (1% each) declined.

The index for ‘Minerals’ group rose by 9.0 percent to 234.8 (provisional) from 215.5 (provisional) for the previous month due to higher price of manganese ore (24%), crude petroleum (13%), copper ore (11%), chromite (8%), iron ore (3 %) and zinc concentrate (2%).  However, the price of sillimanite (11%) declined.

 FUEL & POWER (Weight 14.91%)

The index for this major group rose by 1.3 percent to 203.8 (provisional) from 201.2  (provisional) for the previous month due to higher price of coking coal (15%), aviation turbine fuel (3%), bitumen (2%) and kerosene, high speed diesel,      LPG and lignite (1% each).  However, the price of furnace oil (1%) declined.

MANUFACTURED PRODUCTS (Weight 64.97%)

The index for this major group remained unchanged at its previous month’s level of 158.8 (provisional). The groups and items for which the index showed variations during the month are as follows:-

The index for ‘ Beverages, Tobacco & Tobacco Products ‘ group declined by 0.2 percent to 221.5 (provisional) from 221.9 (provisional) for the previous month due to the lower price of zarda (7%) and beer (3%).  However, the price of soft drinks & carbonated water and rectified spirit (1% each) moved up.

The index for ‘ Textiles ‘ group rose by 0.2 percent to 142.6 (provisional) from 142.3 (provisional) for the previous month due to the higher price of tyre cord fabric (4%) and man-made fabric (2%).  However, the price of jute sacking cloth and  jute sacking bag (1% each) declined.

The index for ‘Wood & Wood Products’ group declined by  0.4 percent to 191.8 (provisional) from 192.6 (provisional) for the previous month due to the lower price of plywood & fibre board (1%).

The index for ‘Leather & Leather Products’ group declined by 0.3 percent to 145.1 (provisional) from 145.5 (provisional) for the previous month due to the lower price of leather footwear (1%).  However, the price of leathers (1%) moved up.

The index for ‘Rubber & Plastic Products’ group rose by 0.2 percent to 148.9 (provisional) from 148.6 (provisional) for the previous month due to the higher price of rubber products (1%).

The index for ‘Chemicals & Chemical Products’ group rose by 0.4 percent to 151.5 (provisional) from 150.9 (provisional) for the previous month due to higher price of non-cyclic compound (4%), turpentine oil (3%) and basic organic chemicals, synthetic resin, explosives, ayurvedic medicines and toilet soap (1% each).  However, the price of rubber chemicals and pesticides (1% each) declined.

The index for ‘Non-Metallic Mineral Products ‘ group rose by 0.1 percent to 178.8 (provisional) from 178.6 (provisional) for the previous month due to the higher price of railway sleeper (3%) and grey cement (1%). However, the price of glass bottles & bottleware and marbles (1% each) declined.

The index for ‘Basic Metals, Alloys & Metal Products’ group declined by  0.5 percent to 160.4 (provisional) from 161.2 (provisional) for the previous month due to lower price of pig iron (5%), pipes/tubes/rods/strips, gp/gc sheets and wire rods (3% each), pencil  ingots and HRC (2% each) and rounds, angles, sheets, CRC and rebars (1% each).  However, the price of ferro chrome (7 %) and steel castings, gold & gold ornaments, pressure cooker, silver, iron & steel wire, steel: pipes & tubes, ferrosilicon and aluminium (1% each) moved up.

The index for ‘Transport, Equipment & Parts’ group rose by 0.5 percent to 140.5 (provisional) from 139.8 (provisional) for the previous month due to the higher price of auto rickshaw/tempo / matador (4%) and auto parts (1%).

FINAL INDEX FOR THE MONTH OF DECEMBER, 2016 (BASE YEAR: 2004-05=100)

For the month of  December 2016, the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) stood at 183.3 as compared to 182.8 (provisional) and the annual rate of inflation based on final index stood at 3.68 percent as compared to 3.39 percent (provisional) respectively as reported on 16.01.2017.