Index Numbers of Wholesale Price in India (Base: 2004-05=100) Review for the month of February, 2014

The official Wholesale Price Index for ‘All Commodities’ (Base: 2004-05 = 100) for the month of February, 2014 has remained unchanged at its previous month level of 178.9 (provisional).

INFLATION

The annual rate of inflation, based on monthly WPI, stood at 4.68% (provisional) for the month of February, 2014 (over February,2013) as compared to 5.05% (provisional) for the previous month and 7.28% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 5.17% compared to a build up rate of 6.15% 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 declined by 0.1 percent to 238.6 (provisional) from 238.9 (provisional) for the previous month.  The groups and items which showed variations during the month are as follows:-

The index for ‘Food Articles’ group declined by 0.3 percent to 232.9 (provisional) from 233.6 (provisional) for the previous month due to lower price of poultry chicken (11%), egg (5%), gram and fruits & vegetables (3% each),  maize and barley (2% each) and ragi, tea, bajra and arhar (1% each).  However, the price of fish-inland (6%),  jowar and moong (3% each), masur and urad (2% each) and milk, rice and mutton (1% each) moved up.

The index for ‘Non-Food Articles’ group rose by 0.6 percent to 217.4 (provisional) from 216.0 (provisional) for the previous month due to higher price of raw silk (10%), fodder (5%), copra (coconut) (4%), soyabean (3%), cotton seed (2%) and groundnut seed, flowers and raw cotton (1% each).  However, the price of castor seed (5%), rape & mustard seed (4%), niger seed and raw rubber (3% each), sunflower, gingelly seed and safflower (2% each) and guar seed, coir fibre and linseed (1% each) declined.

The index for  ‘Minerals’ group declined by 0.2 percent to 352.1 (provisional) from 352.9 (provisional) for the previous month due to lower price of dolomite (7%) and crude petroleum and zinc concentrate (1% each).  However, the price of sillimanite (6%),  barytes and copper ore (5% each),  steatite (4%) and chromite and iron ore (1% each) moved up.

FUEL & POWER (Weight 14.91%)

The index for this major group decline by 0.1 percent to 212.6 (provisional) from 212.8 (provisional) for the previous month due to lower price of coking coal (7%), aviation turbine fuel, kerosene and electricity (agricultural) (2% each) and LPG (1%).  However, petrol and high speed diesel (1% each) moved up.

MANUFACTURED PRODUCTS (Weight 64.97%)

The index for this major group rose by 0.1 percent to 152.7 (provisional) from 152.6 (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 0.5 percent to 168.2 (provisional) from 169.1 (provisional) for the previous month due to lower price of tea leaf (blended) (10%), tea leaf (unblended) (7%), gram powder (besan) (5%), gur, gingelly oil, sunflower oil and sugar (2% each) and copra oil, oil cakes and groundnut oil (1% each).  However, the price of tea dust (blended) (4%), gola (cattle feed) and processed prawn (3% each), bakery products,     mixed spices and powder milk (2% each) and rice bran oil, tea dust (unblended) and cotton seed oil (1% each) moved up.

The index for ‘ Beverages, Tobacco & Tobacco Products ‘ group declined by 0.3 percent to 187.6 (provisional) from 188.1 (provisional) for the previous month due to lower price of soft drinks & carbonated water (1%).

The index for ‘Textiles’ group declined by 0.4 percent to 140.4 (provisional) from 140.9 (provisional) for the previous month due to lower price of tyre cord fabric (2%).  However, the price of cotton yarn, man made fibre,  man made fabric and cotton fabric (1% each) moved up.

The index for ‘ Wood & Wood Products ‘ group rose by 1.7 percent to 182.1 (provisional) from 179.0 (provisional) for the previous month due to higher price of  plywood & fibre board (3%) and timber / wooden planks (1%).

The index for ‘Paper & Paper Products’ group rose by 1.0 percent to 146.2 (provisional) from 144.7 (provisional) for the previous month due to higher price of newsprint (15%), newspaper (4%), paper for printing/poster and paper cartons/boxes (3% each) and printing and writing paper (1%).

The index for ‘Leather & Leather Products’ group rose by 0.7 percent to 145.3 (provisional) from 144.3 (provisional) for the previous month due to higher price of leather garments & jackets (5%) and leathers (1%).  However, the price of leather footwear (1%) declined.

The index for ‘Rubber & Plastic Products’ group rose by 0.1 percent to 148.4 (provisional) from 148.3 (provisional) for the previous month due to higher price of automobile  rubber padding (8%), foot ball (6%), polythene/plastic granule (3%), hdpe bag (2%) and other rubber tubes and plastic/ldpe/polythene bag (1% each).  However, the price of rubber moulded goods (9%), expandable polystyrene and polyester chips (1%) declined.

The index for ‘Chemicals & Chemical Products’ group rose by 0.5 percent to 150.8 (provisional) from 150.0 (provisional) for the previous month due to higher price of agarbattis and tooth paste/tooth powder (10% each),     dye & dye intermediates (4%), ayurvedic medicines (3%), turpentine oil (2%), pigment & pigment intermediates,     ammonium sulphate, hair/body oils, distemper, thermocol, explosives and basic organic chemicals (1% each).  However, the price of rubber chemicals and antacid & digestive preparations (1% each) declined.

The index for ‘Non-Metallic Mineral Products’ group rose by 0.5 percent to 166.5 (provisional) from 165.6 (provisional) for the previous month due to higher price of railway sleeper (5%), bricks & tiles (2%) and grey cement (1%).  However, the price of marbles (2%) declined.

The index for ‘Basic Metals, Alloys & Metal Products’ group rose by 0.4 percent to 166.6 (provisional) from 165.9 (provisional) for the previous month due to higher price of sponge iron (4%), melting scrap (2%) and pencil  ingots, ferro manganese, copper / copper ingots, iron castings, silver, gold & gold ornaments, sheets, steel rods, pig iron, rounds, angles, iron & steel wire, wire rods and gp/gc sheets (1% each).  However, the price of steel castings (2%) and ferro chrome, hdpe woven sacks and plates (1% each) declined.

The index for ‘Machinery & Machine Tools’ group declined by 0.1 percent to 132.4 (provisional) from 132.5 (provisional) for the previous month due to lower price of control equipments and electric motors (3% each) and machine tools and pvc insulated cable (1% each).  However, the price of fibre optic cable (5%), fans, conductor,  lifts and air conditioner & refrigerators (2% each) and insulators (1%) moved up.

The index for ‘Transport, Equipment & Parts’ group declined by 0.2 percent to 135.5 (provisional) from 135.8 (provisional) for the previous month due to lower price of bus / mini bus / truck and parts of ships/boats etc. (1% each).  However, the price of shafts (all kinds) (1%) moved up.

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

For the month of  December, 2013, the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) stood at 179.6 as compared to 179.2 (provisional) and annual rate of inflation based on final index stood at 6.40 percent as compared to 6.16 percent respectively as reported on 15.01.2014.

Next date of press release: 14/04/2014 for the month of March, 2014

Office of Economic Adviser, Ministry of Commerce & Industry, New Delhi,

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