By TIOL News Service

NEW DELHI, JAN 14, 2020: THE official Wholesale Price Index for 'All Commodities' (Base : 2011-12=100) for the month of December, 2019 rose by 0.4 percent to 122.8 (provisional) from 122.3 (provisional) for the previous month.

INFLATION

The annual rate of inflation, based on monthly WPI, stood at 2.59% (provisional) for the month of December, 2019 (over December,2018) as compared to 0.58% (provisional) for the previous month and 3.46% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 2.42% compared to a build up rate of 2.92% 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 1 percent to 148.8 (provisional) from 147.3 (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 162.5 (provisional) from 162.4 (provisional) for the previous month due to higher price of betel leaves (13%), urad (9%), egg and mutton (5% each), bajra and jowar (3% each), moong, masur and maize (2% each), barley, pork, milk , wheat, condiments & spices and arhar (1% each). However, the price of peas/chawali (11%), ragi and fish-marine (3% each), coffee, beef and buffalo meat (2% each), fruits & vegetables, fish-inland, gram, tea and rajma (1% each) declined.

The index for ' Non-Food Articles' group rose by 5.5 percent to 134 (provisional) from 127 (provisional) for the previous month due to higher price of floriculture (46%), raw silk and soyabean (7% each), fodder, rape & mustard seed and mesta (3% each), raw rubber, linseed, sunflower, gingelly seed (sesamum) and cotton seed (2% each), skins (raw) (1%). However, the price of gaur seed (4%), niger seed (3%), groundnut seed and castor seed (2% each), copra (coconut), raw cotton and hides (raw) (1% each) declined.

The index for 'Minerals' group declined by 0.8 percent to 153.6 (provisional) from 154.8 (provisional) for the previous month due to lower price of copper concentrate (4%). However, the price of chromite (6%), limestone (5%), iron ore (3%), lead concentrate (1%) moved up.

The index for 'Crude Petroleum & Natural Gas' group rose by 3.5 percent to 86.0 (provisional) from 83.1 (provisional) for the previous month due to higher price of crude petroleum (5%).

FUEL & POWER (Weight 13.15%)

The index for this major group remained unchanged at its previous month level of 101.3. The groups and items which showed variations during the month are as follows:-

The index for 'Coal' group rose by 1.4 percent to 126.5 (provisional) from 124.8 (provisional) for the previous month due to higher price of coking coal (4%).

The index for 'Mineral Oils' group declined by 0.4 percent to 91.2 (provisional) from 91.6 (provisional) for the previous month due to lower price of petroleum coke (25%), furnace oil (17%), bitumen (7%). However, the price of naphtha (8%), LPG (3%), petrol (1%) moved up.

MANUFACTURED PRODUCTS (Weight 64.23%)

The index for this major group rose by 0.2 percent to 118.0 (provisional) from 117.8 (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 rose by 1.0 percent to 136.6 (provisional) from 135.3 (provisional) for the previous month due to higher price of palm oil (8%), rice bran oil and groundnut oil (6% each), cotton seed oil and mustard oil (4% each), soyabean oil, condensed milk, wheat bran and rapeseed oil (3% each), molasses, sunflower oil, ghee and butter (2% each), copra oil, instant coffee, manufacture of processed ready to eat food, manufacture of cocoa, chocolate and sugar confectionery, manufacture of starches and starch products, bagasse, wheat flour (atta) and vanaspati (1% each). However, the price of manufacture of macaroni, noodles, couscous and similar farinaceous products (7%), processed tea, honey and buffalo meat, fresh/frozen (3% each), manufacture of prepared animal feeds, other meats, preserved/processed, processing and preserving of fish, crustaceans and molluscs and products thereof and gur (2% each), manufacture of health supplements, coffee powder with chicory, rice, non-basmati, basmati rice, sugar, salt and spices (including mixed spices) (1% each) declined.

The index for 'Manufacture of Beverages' group declined by 0.3 percent to 123.4 (provisional) from 123.8 (provisional) for the previous month due to lower price of country liquor, bottled mineral water and rectified spirit (1% each).

The index for 'Manufacture of Tobacco Products' group declined by 0.2 percent to 152.9 (provisional) from 153.2 (provisional) for the previous month due to lower price of cigarette(0.2%), biri(0.1%) and other tobacco products(0.2%).

The index for 'Manufacture of Textiles' group declined by 0.2 percent to 116.9 (provisional) from 117.1 (provisional) for the previous month due to lower price of woollen yarn (2%), manufacture of other textiles (1%).

The index for 'Manufacture of Wearing Apparel' group rose by 0.1 percent to 139.1 (provisional) from 138.9 (provisional) for the previous month due to higher price of Leather garments incl. jackets( 2.8%), Hosiery goods, others– cotton(1.1%) and cardigans and pullovers, knitted(0.2%). However, the price of shawls and scarves, knitted( 1.1%), trouser/pants made of cotton and/or man-made fibre (0.8%) declined.

The index for 'Manufacture of Leather and Related Products' group rose by 0.2 percent to 118.9 (provisional) from 118.7 (provisional) for the previous month due to higher price of belt & other articles of leather (3%), athletic/sport shoes (2%), leather shoe and gloves of leather (1% each). However, the price of chrome tanned leather (2%), travel goods, handbags, office bags, etc., harness, saddles & other related items and canvas shoes (1% each) declined.

The index for 'Manufacture of Wood and Of Products Of Wood And Cork ' group declined by 0.4 percent to 133.1 (provisional) from 133.7 (provisional) for the previous month due to lower price of wooden box/crate (6%), timber/wooden plank, sawn/resawn (1%). However, the price of wood cutting, processed/sized, wooden panel, wooden block - compressed or not and plywood block boards (1% each) moved up.

The index for 'Manufacture of Paper and Paper Products' group declined by 0.2 percent to 119.5 (provisional) from 119.7 (provisional) for the previous month due to lower price of corrugated sheet box (2%), corrugated paper board, tissue paper, base paper, pulp board and duplex paper (1% each). However, the price of laminated plastic sheet, card board and newsprint (2% each), bristle paper board, poster paper and paper carton/box (1%) moved up.

The index for 'Printing and Reproduction Of Recorded Media ' group declined by 1.3 percent to 150.3 (provisional) from 152.3 (provisional) for the previous month due to lower price of journal/periodical (3%), printed books (1%). However, the price of printed form & schedule (11%), hologram (3D) (2%), sticker plastic (1%) moved up.

The index for 'Manufacture of Chemicals and Chemical Products' group declined by 0.5 percent to 116.2 (provisional) from 116.8 (provisional) for the previous month due to lower price of poly propylene (PP) (8%), acetic acid and its derivatives and sulphuric acid (4% each), menthol, organic chemicals and carbon black (3% each), alcohols, camphor, rubber chemicals, soda ash/washing soda, explosive, polyethylene and nitrogenous fertilizer, others (2%), viscose staple fibre, phthalic anhydride, ethyl acetate, aniline (including pna, ona, ocpna), poly vinyl chloride (pvc), polystyrene, expandable, insecticide and pesticide, dye stuff/dyes incl. dye intermediates and pigments/colours, aromatic chemicals, ammonium nitrate, oleoresin, ammonium phosphate, polyester chips or polyethylene terepthalate (pet) chips, sodium silicate, di ammonium phosphate, liquid air & other gaseous products, catalysts, agro chemical formulation and hair oil/body oil (1%). However, the price of ammonium sulphate (11%), foundry chemical (3%), varnish (all types), mono ethyl glycol, organic surface active agent and hydrogen peroxide (2% each), shampoo, fatty acid, detergent cake, washing soap cake/bar/powder, plasticizer, phosphoric acid, ammonia liquid, other inorganic chemicals, toilet soap, adhesive tape (non-medicinal), tooth paste/tooth powder and additive (1% each) moved up.

The index for 'Manufacture of Pharmaceuticals, Medicinal Chemical and Botanical Products' group rose by 1.0 percent to 127.9 (provisional) from 126.6 (provisional) for the previous month due to higher price of vials/ampoule, glass, empty or filled and anti-retroviral drugs for HIV treatment (3% each), antidiabetic drug excluding insulin (i.e. tolbutam), API & formulations of vitamins, antibiotics & preparations thereof and digestive enzymes and antacids (2% each), cotton wool (medicinal) (1%). However, the price of antipyretic, analgesic, anti-inflammatory formulations (6%), plastic capsules, anti-allergic drugs and antioxidants (1% each) declined.

The index for 'Manufacture of Rubber and Plastics Products' group rose by 0.6 percent to 108.3 (provisional) from 107.7 (provisional) for the previous month due to higher price of elastic webbing, plastic bottle and plastic components (4% each), condoms (3%), tooth brush, plastic box/container, polypropylene film, rubber cloth/sheet and medium & heavy commercial vehicle tyre (2% each), tractor tyre, plastic button, 2/3 wheeler tyre, plastic furniture, rubber crumb and conveyer belt (fibre based) (1% each). However, the price of rubber components & parts (4%), plastic bag , rubber tread, acrylic/plastic sheet, plastic film and plastic tube (flexible/non-flexible) (2% each), plastic tank, pvc fittings & other accessories, cycle/cycle rickshaw tyre, motor car tyre, rubber moulded goods, thermocol and 2/3 wheeler rubber tube (1% each) declined.

The index for 'Manufacture of Other Non-Metallic Mineral Products' group rose by 0.3 percent to 115.8 (provisional) from 115.4 (provisional) for the previous month due to higher price of glass bottle and porcelain sanitary ware (6% each), ordinary sheet glass (2%), railway sleeper, cement blocks (concrete), asbestos corrugated sheet, poles & posts of concrete, stone, chip, clinker, plain bricks, electric insulating material, granite and marble slab (1% each). However, the price of graphite rod (5%), cement superfine, non-ceramic tiles, ceramic tiles (vitrified tiles) and toughened glass (2% each), lime and calcium carbonate, pozzolana cement and slag cement (1% each) declined.

The index for 'Manufacture of Basic Metals' group rose by 0.2 percent to 103.5 (provisional) from 103.3 (provisional) for the previous month due to higher price of mild steel (MS) blooms (3%), MS wire rods and alloy steel castings (2% each), hot rolled (HR) coils & sheets, including narrow strip, sponge iron/direct reduced iron (DRI), pig iron, MS bright bars, aluminum powder, steel cables, ferromanganese and MS pencil ingots (1% each). However, the price of aluminum disk and circles (5%), brass metal/sheet/coils (4%), ferrochrome and cast iron, castings (3% each), other ferro alloys, aluminum alloys, alloy steel wire rods and stainless steel bars & rods, including flats (2% each), ferrosilicon, zinc metal/zinc blocks, stainless steel coils, strips & sheets, aluminum foil, aluminum shapes - bars/rods/flats, ms castings, steel forgings – rough and lead ingots, bars, blocks, plates (1% each) declined.

The index for 'Manufacture of Fabricated Metal Products, Except Machinery and Equipment' group rose by 0.1 percent to 115.6 (provisional) from 115.5 (provisional) for the previous month due to higher price of copper bolts, screws, nuts and hand tools (2% each), electrical stamping- laminated or otherwise, metal cutting tools & accessories, hose pipes in set or otherwise, steel structures and forged steel rings (1% each). However, the price of sanitary fittings of iron & steel (5%), steel pipes, tubes & poles, steel drums and barrels, jigs & fixture, steel door and cylinders (1% each) declined.

The index for 'Manufacture of Computer, Electronic and Optical Products' group rose by 0.5 percent to 110.0 (provisional) from 109.5 (provisional) for the previous month due to higher price of colour tv and microscope (3% each), meter (non-electrical) and electronic printed circuit board (pcb)/micro circuit  (1% each). However, the price of electro-diagnostic apparatus, used in medical, surgical, dental or veterinary sciences (2%), air conditioner (1%) declined.

The index for 'Manufacture of Electrical Equipment' group declined by 0.3 percent to 110.6 (provisional) from 110.9 (provisional) for the previous month due to lower price of dry cells such as torch light batteries (3%), transformer and flourescent tube (2% each), electric switch, connector/plug/socket/holder-electric, pvc insulated cable, insulating & flexible wire, batteries, electric mixers/grinders/food processors, electrical relay/conductor and light fitting accessories (1% each). However, the price of air coolers (5%), rotor/magneto rotor assembly (4%), insulator, domestic gas stove, jelly filled cables and fibre optic cables (3% each), acsr conductors and electric accumulators (2% each), copper wire, solenoid valve, AC motor and electrical resistors (except heating resistors) (1% each) moved up.

The index for 'Manufacture of Machinery and Equipment' group rose by 0.4 percent to 113.0 (provisional) from 112.6 (provisional) for the previous month due to higher price of cranes (5%), gasket kit (4%), chillers, air filters, roller and ball bearings, precision machinery equipment/form tools, manufacture of bearings, gears, gearing and driving elements, mining, quarrying & metallurgical machinery/parts and hydraulic pump (2% each), conveyors - non-roller type, industrial valve, sugar machinery, packing machine, lathes, excavator and filtration equipment (1% each). However, the price of pressure vessel and tank for fermentation & other food processing and chemical equipment & system (6% each), solar power system (solar panel & attachable equipment) (5%), deep freezers (3%), machinery for plastic products - extruded (2%), hydraulic equipment, air gas compressor including compressor for refrigerator, motor starter, printing machinery, evaporator and injection pump (1% each) declined.

The index for 'Manufacture of Motor Vehicles, Trailers and Semi-Trailers' group declined by 0.7 percent to 114.9 (provisional) from 115.7 (provisional) for the previous month due to lower price of engine and shock absorbers (3% each), head lamp, body (for commercial motor vehicles) and piston ring/piston and compressor (1% each). However, the price of brake pad/brake liner/brake block/brake rubber, others (2%), crankshaft, release valve, axles of motor vehicles, shafts of all kinds and filter element (1% each) moved up.

The index for 'Manufacture of Other Transport Equipment' group rose by 0.1 percent to 118.4 (provisional) from 118.3 (provisional) for the previous month due to higher price of bicycles of all types (2%). However, the price of scooters (1%) declined.

The index for 'Manufacture of Furniture' group declined by 1.0 percent to 129.9 (provisional) from 131.2 (provisional) for the previous month due to lower price of foam and rubber mattress (7%). However, the price of hospital furniture (3%), plastic fixtures (3%), steel shutter gate (1%) moved up.

The index for 'Other Manufacturing' group rose by 0.4 percent to 114.1 (provisional) from 113.6 (provisional) for the previous month due to higher price of playing cards (2%), football and plastic moulded-others toys (1% each). However, the price of stringed musical instruments (incl. santoor, guitars, etc.) and cricket ball (2% each), non-mechanical toys, silver, cricket bat and table tennis table (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 9.02% in November, 2019 to 11.05% in December, 2019.

FINAL INDEX FOR THE MONTH OF OCTOBER, 2019 (BASE YEAR:2011-12=100)

For the month of October, 2019 the final Wholesale Price Index for 'All Commodities' (Base: 2011-12=100) stood at 122.0 as compared to 122.2(provisional) and annual rate of inflation based on final index stood at 0.00 percent as compared to 0.16 percent (provisional) respectively as reported on 14-11-2019.