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

The official Wholesale Price Index for ‘All Commodities’ (Base: 2004-05 = 100) for the month of October, 2013 rose by 0.3 percent to 180.3 (provisional) from 179.7 (provisional) for the previous month.

INFLATION

The annual rate of inflation, based on monthly WPI, stood at 7.00% (provisional) for the month of October, 2013 (over October, 2012) as compared to 6.46% (provisional) for the previous month and 7.32% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 6.00% compared to a build up rate of 4.66% 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 remained unchanged at its previous month level of 251.6 (provisional). The groups and items which showed variations during the month are as follows:-

The index for ‘Food Articles’ group declined by 0.4 percent to 251.4 (provisional) from 252.3 (provisional) for the previous month due to lower price of ragi and maize (5% each), tea (4%) and poultry chicken, fruits & vegetables and fish-marine (3% each). However, the price of fish-inland (8%), moong (5%), coffee (3%), condiments & spices, egg, wheat, urad and pork (2% each) and rice, mutton, beef & buffalo meat, barley and arhar   (1% each) moved up.

The index for ‘Non-Food Articles’ group declined by 0.7 percent to 212.3 (provisional) from 213.7 (provisional) for the previous month due to lower price of guar seed (16%), logs & timber (13%), raw rubber (11%), sunflower (4%),     raw cotton (3%), castor seed (2%) and soyabean, gingelly seed and linseed (1% each). However, the price of     copra (coconut) (12%), raw jute (6%), groundnut seed (5%), niger seed (2%) and coir fibre (1%) moved up.

The index for ‘Minerals’ group rose by 3.3 percent to 363.7 (provisional) from 352.1 (provisional) for the previous month due to higher price of zinc concentrate and crude petroleum (8% each) and copper ore (3%). However, the price of sillimanite (8%), iron ore (6%), phosphorite (2%) and chromite (1%) declined.

FUEL & POWER (Weight 14.91%)

The index for this major group rose by 0.9 percent to 209.4 (provisional) from 207.5 (provisional) for the previous month due to higher price of electricity (agricultural) (13%), electricity (industry) (10%), electricity (domestic) (5%), electricity (commercial) and electricity (railway traction) (4% each), aviation turbine fuel (3%) and bitumen, lubricants and kerosene (1% each). However, the price of petrol (4%) and furnace oil (3%) declined.

MANUFACTURED PRODUCTS (Weight 64.97%)

The index for this major group rose by 0.4 percent to 151.6 (provisional) from 151.0 (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 declined by 0.1 percent to 169.8 (provisional) from 170.0 (provisional) for the previous month due to lower price of tea leaf (blended) (3%), tea dust (unblended) (2%) and tea dust (blended), sugar, gur, sunflower oil and khandsari (1% each). However, the price of processed prawn (4%), ghee, mixed spices, cotton seed oil, oil cakes and copra oil (1% each) moved up.

The index for ‘Beverages, Tobacco & Tobacco Products’ group rose by 0.9 percent to 182.9 (provisional) from 181.2 (provisional) for the previous month due to higher price of dried tobacco (9%), chewing tobacco (scented or not ) (4 %), imfl-blended (2%) and soft drinks & carbonated water and rectified spirit (1% each).

The index for ‘Textiles’ group rose by 1.0 percent to 139.7 (provisional) from 138.3 (provisional) for the previous month due to higher price of woollen textiles (3%) and tyre cord fabric, cotton yarn, jute sacking bag, man made fabric and man made fibre (1% each). However, the price of gunny and hessian cloth (4%) declined.

The index for ‘Paper & Paper Products’ group rose by 1.1 percent to 142.3 (provisional) from 140.8 (provisional) for the previous month due to higher price of paper pulp, computer stationery and newspaper (3% each), printing and writing paper and corrugated sheet boxes (2% each) and paper cartons / boxes, paper rolls, cream laid woven paper,     paper for printing / poster and kraft paper & bags (1% each).

The index for ‘Leather & Leather Products’ group declined by 0.9 percent to 143.8 (provisional) from 145.1 (provisional) for the previous month due to lower price of leather footwear (1%).

The index for ‘Rubber & Plastic Products’ group rose by 0.5 percent to 146.6 (provisional) from 145.8 (provisional) for the previous month due to higher price of rubber products (2%) and tyres (1%).

The index for ‘Chemicals & Chemical Products’ group rose by 0.1 percent to 148.9 (provisional) from 148.7 (provisional) for the previous month due to higher price of washing powder, safety matches/ match box, pesticides and pigment & pigment intermediates (2% each) and castor oil, basic organic chemicals, organic manure, hair / body oils and paints (1% each). However, the price of synthetic resin (5%) and thermocol, rubber chemicals,     explosives, washing soap, distemper, dye & dye intermediates, non-cyclic compound and vitamins (1% each) declined.

The index for ‘Basic Metals, Alloys & Metal Products’ group rose by 0.6 percent to 164.1 (provisional) from 163.1 (provisional) for the previous month due to higher price of ferro chrome (5%), sheets (4%), silver (3%), steel castings (2%) and hrc, ferro manganese, melting scrap, pressure cooker, ferro silicon, furniture, crc and steel: pipes & tubes (1% each). However, the price of wire rods and pipes/tubes/rods/strips (1% each) declined.

The index for ‘Machinery & Machine Tools’ group rose by 0.4 percent to 131.6 (provisional) from 131.1 (provisional) for the previous month due to higher price of battery dry cells (9%), electric motors (3%), chemical plant equipments, ups / stabilizer and air conditioner & refrigerators (2% each) and capacitors, batteries, t.v.sets and     electric switch gears (1% each). However, the price of t.v. accessories (5%), conductor (3%) and fibre optic cable and lamps (2% each) declined.

The index for ‘Transport, Equipment & Parts’ group rose by 1.2 percent to 135.7 (provisional) from 134.1 (provisional) for the previous month due to higher price of auto rickshaw / tempo / matador (4%), motor cycle / scooter / moped, motor vehicles and railway axle & wheel (2% each) and bi-cycles (1%).

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

For the month of August, 2013, the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) stood at 179.0 as compared to 177.5 (provisional) and annual rate of inflation based on final index stood at 6.99 percent as compared to 6.10 percent respectively as reported on 16.09.2013.

Annexure-I

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

Month of October, 2013