Index Numbers of Wholesale Price in India (Base: 2004-05=100) Review for the month of July, 2013

The official Wholesale Price Index for ‘All Commodities’ (Base: 2004-05 = 100) for the month July, 2013 rose by 1.6 percent to 175.4 (provisional) from 172.7 (provisional) for the previous month.

INFLATION

The annual rate of inflation, based on monthly WPI, stood at 5.79% (provisional) for the month of July, 2013 (over July, 2012) as compared to 4.86% (provisional) for the previous month and 7.52% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 3.12% compared to a build up rate of 2.98% 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 groups is summarized below:-

PRIMARY ARTICLES (Weight 20.12%)

The index for this major group rose by 2.7 percent to 238.8 (provisional) from 232.5 (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 3.4 percent to 237.7 (provisional) from 229.8 (provisional) for the previous month due to higher price of fruits & vegetables (11%), rice (5%), fish-inland (5%) and fish-marine,  barley, urad, condiments & spices, mutton, wheat and masur (1% each). However, the price of poultry chicken (9 %), coffee (3%), gram and egg (2% each) and arhar, bajra and moong (1% each) declined.

The index for ‘Non-Food Articles’ group rose by 0.9 percent to 210.7 (provisional) from 208.8 (provisional) for the previous month due to higher price of raw rubber (10%), raw cotton (7%), fodder (5%), gingelly seed (4%),  linseed and copra (3% each), raw silk, castor seed and cotton seed (2% each) and sunflower, mesta and coir fibre (1 % each). However, the price of guar seed (18%), groundnut seed (7%), flowers (6%), tobacco and raw jute (2% each) and niger seed (1%) declined.

The index for ‘Minerals’ group rose by 1.1 percent to 328.5 (provisional) from 324.9 (provisional) for the previous month due to higher price of sillimanite (6%), crude petroleum (4%) and steatite and zinc concentrate (1 % each). However, the price of copper ore (8%) and chromite and iron ore (2% each) declined.

FUEL & POWER (Weight 14.91%)

The index for this major group rose by 3.0 percent to 199.8 (provisional) from 194.0 (provisional) for the previous month due to higher price of furnace oil, aviation turbine fuel, petrol and bitumen (7% each) and high speed diesel (3%). However, the price of lpg (2%) declined.

MANUFACTURED PRODUCTS (Weight 64.97%)

The index for this major group rose by 0.6 percent to 150.2 (provisional) from 149.3 (provisional) for the previous month. The groups and items for which the index showed variations during the month are as follows:-

The index for ‘Food Products’ group rose by 0.7 percent to 168.9 (provisional) from 167.7 (provisional) for the previous month due to higher price of tea leaf (blended) (17%), cotton seed oil (4%), processed prawn, sooji (rawa) and gola (cattle feed) (3% each), wheat flour (atta), bakery products, mixed spices, maida and gur (2% each) and     palm oil, tea leaf (unblended), oil cakes, tea dust (unblended) and sunflower oil (1% each). However, the price of     groundnut oil (8%), copra oil (6%), gingelly oil (5%) and gram powder (besan), rice bran oil, sugar confectionary,     sugar, canned fish and soyabean oil (1% each) declined.

The index for ‘Beverages, Tobacco & Tobacco Products’ group rose by 0.2 percent to 181.8 (provisional) from 181.4 (provisional) for the previous month due to higher price of bidi (1%). However, the price of rectified spirit and dried tobacco (1% each) declined.

The index for ‘Textiles’ group rose by 0.8 percent to 136.4 (provisional) from 135.3 (provisional) for the previous month due to higher price of gunny & hessian cloth (2%) and man made fibre, cotton fabric, cotton yarn, tyre cord fabric and man made fabric (1% each). However, the price of jute sacking cloth (1%) declined.

The index for ‘Wood & Wood Products’ group rose by 0.3 percent to 175.8 (provisional) from 175.3 (provisional) for the previous month due to higher price of plywood & fibre board (1%).

The index for ‘Leather & Leather Products’ group rose by 3.2 percent to 142.5 (provisional) from 138.1 (provisional) for the previous month due to higher price of leather garments & jackets (10%), leather footwear (3%).

The index for ‘Rubber & Plastic Products’ group rose by 1.4 percent to 144.4 (provisional) from 142.4 (provisional) for the previous month due to higher price of tyres, tubes and plastic products (2% each).

The index for ‘Chemicals & Chemical Products’ group rose by 1.1 percent to 147.6 (provisional) from 146.0 (provisional) for the previous month due to higher price of polymers (8%), rubber chemicals and di ammonium phosphate (4% each), synthetic resin, washing powder and toilet soap (3% each), paints and washing soap (2% each) and basic organic chemicals, pigment & pigment intermediates, dye & dye intermediates, photographic goods, lacquer & varnishes and ayurvedic medicines (1% each). However, the price of hair / body oils (2%) and turpentine oil and antacid and digestive preparations (1% each) declined.

The index for ‘Non-Metallic Mineral Products’ group declined by 0.1 percent to 166.4 (provisional) from 166.6 (provisional) for the previous month due to lower price of marbles (1%). However, the price of bricks & tiles (1%) moved up.

The index for ‘Basic Metals, Alloys & Metal Products’ group declined by 0.4 percent to 162.3 (provisional) from 163.0 (provisional) for the previous month due to lower price of silver (14%), gold & gold ornaments (4%), sponge iron (3%), angles, sheets and melting scrap (2% each) and ferro manganese, hrc, brass, nuts/bolts/screw/ washers and wire rods (1% each). However, the price of furniture (19%), steel castings (3%), metal containers and utensils (other than aluminium) (2% each) and ferro silicon, steel structures, fixtures, copper / copper ingots and iron castings (1% each) moved up.

The index for ‘Machinery & Machine Tools’ group rose by 0.8 percent to 131.5 (provisional) from 130.4 (provisional) for the previous month due to higher price of electric generators (14%), fibre optic cable (8%),  electronic pcb /micro circuit (5%), industrial furnaces (4%), battery dry cells, control equipments, t.v. accessories,     boiler & accessories and batteries (2% each) and loader, earth moving machinery, electric motors, capacitors and thresher (1% each). However, the price of heating elements and ball/roller bearing (6% each), material handling equipments, fluorescent tubes, microwave oven and air conditioner & refrigerators (1% each) declined.

The index for ‘Transport, Equipment & Parts’ group rose by 0.4 percent to 133.2 (provisional) from 132.7 (provisional) for the previous month due to higher price of railway axle & wheel (3%), motor vehicles and auto parts (1% each).

FINAL INDEX FOR THE MONTH OF MAY, 2013 (BASE YEAR: 2004-05=100)

For the month of May, 2013, the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) stood at 171.4 as compared to 171.6 (provisional) and annual rate of inflation based on final index stood at 4.58 percent as compared to 4.70 percent respectively as reported on 14.06.2013.

Annexure-I

Wholesale Price Index and Rates of Inflation (Base Year: 2004-05=100)

Month of July, 2013