Index Numbers of Wholesale Prices in India (Base: 2004-05=100)Review for the month of February, 2011

The official Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) for the month of February, 2011 rose by 0.1 percent to 146.0 (Provisional) from 145.9 (Provisional) for the previous month.

INFLATION

The annual rate of inflation, based on monthly WPI, stood at 8.31% (Provisional) for the month of February, 2011 (over February, 2010) as compared to 8.23% (Provisional) for the previous month and 9.68% during the corresponding month of the previous year. Build up inflation in the financial year so far was 7.51% compared to a build up of 9.42% in the corresponding period of the previous year.

Inflation for important commodities / commodity groups is indicated below. 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 2.9 percent to 187.8 (Provisional) from 193.4 (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 Articles' group declined by 5.2 percent to 180.8 (Provisional) from 190.7  (Provisional) for the previous month due to lower prices of fruits & vegetables (20%), moong (5%), condiments & spices (4%), egg and urad (2% each) and rice and masur (1% each).  However, the prices of jowar (9%), arhar (7%), fish-marine and barley (4% each), gram and mutton (3% each),   ragi and wheat (2% each) and milk, maize and poultry chicken (1% each) moved up.

The index for 'Non-Food Articles' group rose by 4.0 percent to 185.1 (Provisional) from 177.9  (Provisional) for the previous month due to higher prices of castor seed (30%), raw cotton (20%),   copra (13%), gaur seed and sunflower (12% each), soyabean (11%), raw rubber (7%), safflower (4%),   coir fibre (2%) and fodder and groundnut seed (1% each).  However, the prices of flowers (36%), niger seed (8%) and mesta (2%) declined.

The index for 'Minerals' group declined by 0.6 percent to 261.0 (Provisional) from 262.6 (Provisional) for the previous month due to lower prices of copper ore (10%), magnesite (9%), zinc concentrate (8%), sillimanite (4%) and iron ore (1%).  However, the prices of chromite (5%), crude petroleum (2%) and steatite and barytes (1% each) moved up.

FUEL & POWER (Weight 14.91%)

The index for this major group rose by 0.7 percent to 152.3 (Provisional) from 151.3 (Provisional) for the previous month due to higher prices of aviation turbine fuel (7%), furnace oil and petrol (3% each), naphtha (2%) and light diesel oil (1%).

MANUFACTURED PRODUCTS (Weight 64.97%)

The index for this major group rose by 1.3 percent to 131.6 (Provisional) from 129.9 (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 0.4 percent to 144.6 (Provisional) from 144.0 (Provisional) for the previous month due to higher prices of  soyabean oil (8%), mixed spices (7%),  cashew kernel, copra oil, cotton seed oil and readymade / instant food powder (6% each), wheat flour  (atta) (5%), gingelly oil and pickles (4% each), vanaspati, powder milk and mustard & rapeseed oil (3% each), canned fish, processed prawn, canned meat, tea dust (unblended) and maida (2% each) and palm oil, ghee, gola (cattle feed) and papad (1% each).  However, the prices of tea leaf (blended) (14%), gur and molasses (8% each), tea leaf (unblended) (7%), sugar confectionary and groundnut oil (3% each), ice cream, rice bran and sugar (2% each) and condensed milk (1%) declined.

The index for 'Beverages, Tobacco & Tobacco Products' group rose by 3.1 percent to 150.5 (Provisional) from 146.0 (Provisional) for the previous month due to higher prices of bidi (13%), mineral  water (8%), zarda (5%), soft drink concentrates (3%) and beer and non-alcoholic beverages (all types) (2% each).  However, the prices of rectified spirit (3%) and aerated water (all types) (1%) declined.

The index for 'Textiles' group rose by 2.7 percent to 123.7 (Provisional) from 120.4 (Provisional) for the previous month due to higher prices of grey cloth (bleached / unbleached) (12%), finished / processed cotton yarn (not knitted) and terry towel (11% each), jute yarn, bed cover & bed sheet and jute sacking bag (10% each), cotton shirting (9%), polyester staple fibre and viscose yarn (8% each), cotton textiles dyed/printed, woollen cardigans/sweaters and cotton yarn (unbleached) (7% each),  woollen carpets and cotton yarn (dyed) (6% each), cotton towel cloth and cotton  knitted fabrics (5% each), woollen hosiery goods, gunny bags (non laminated) and synthetic yarn (4% each), jute sacking cloth and polyester yarn (3% each), acrylic yarn, cotton cloth finished /processed, cotton children suits, synthetic suiting, gunny and hessian cloth, woollen yarn, viscose staple fibre and woollen  shawls (2% each) and texturised and twisted yarn and furnishing cloth (1% each).  However, the prices of polyethylene fabrics (5%), cotton linters and cotton trousers / pants (3% each), blankets, cotton shirts and woollen cloth (2% each) and coir mats & matting (1%) declined.

The index for 'Wood & Wood Products' group rose by 0.3 percent to 149.6 (Provisional) from 149.2 (Provisional) for the previous month due to higher prices of  processed/ sized wood cutting (3%) and wooden chair and veneer wood (1% each).  However, the prices of plywood board and insulation board (1% each) declined.

The index for 'Paper & Paper Products' group rose by 1.1 percent to 126.8 (Provisional) from 125.4 (Provisional) for the previous month due to higher prices of paper cone & tube (7%), paper rolls and bristle paper board (3% each), printing and writing paper and books/ periodicals/ journals (2% each) and kraft paper & bags, computer stationery, corrugated sheet boxes and cream laid woven paper (1% each).  However, the prices of newsprint (2%) and newspaper (1%) declined.

The index for 'Leather & Leather Products' group declined by 3.7 percent to 123.9 (Provisional) from 128.6 (Provisional) for the previous month due to lower prices of vegetable  tanned  leather (15%), leather bags (11%), foot wear/ safety boot (5%) and crome tanned leather and leather shoe upper (2% each).  However, the prices of leather sole (5%), leather harness goods (4%) and leather handbags / wallets (1%) moved up.

The index for 'Rubber & Plastic Products' group rose by 2.0 percent to 129.7 (Provisional) from 127.1 (Provisional) for the previous month due to higher prices of rubber components & parts and plastic/PVC chappals (8% each), cab/car tyre (7%), polyester film (6%), plastic/LDPE/polythene bag (4%), HDPE  woven fabric, rigid PVC and rubber seat assembly (3% each), rubber moulded goods, plastic/PVC shoes, V belt, plastic containers, plastic bottles and plastic films & sheets (2% each) and HDPE bag, polythene/PVC foam, polythene/plastic granules and automobile  rubber padding (1% each).  However, the prices of HDPE woven sacks (1%) declined.

The index for 'Chemicals & Chemical Products' group rose by 1.7 percent to 126.3 (Provisional) from 124.2 (Provisional) for the previous month due to higher prices of  zirconion silicate (14%), carbon di-sulphide and synthetic  rubber (13% each), distemper (12%), ice block/ cube (non edible) and lime & calcium carbonate (9% each), synthetic resin (7%), acid  (organic) and organic manure (6% each), petrochemical building blocks and fatty acid (5% each), caustic soda & soda ash, Di-ammonium phosphate, washing soap, gelatine capsules (empty), antibiotics, formaldehyde and explosives (4% each), phenol or phenol extract and adhesive &  gum (3% each), organic solvent, non-cyclic compound, alcohol &  mixture, nitrogen (gas / liquid), acid (inorganic), washing powder and leather chemicals (2% each) and  pigment & pigment intermediates, additives, urea, polyol, yeast used in food industry, weedicides, Di-calcium phosphate, ammonia (gas / liquid), foundry chemical, hair dye, titanium dioxide,  dye & dye intermediates and turpentine oil (1% each).  However, the prices of chlorine (8%), naphthalene / aniline, safety  matches / match box and shampoo (7% each),     ammonium sulphate (5%), shaving cream (4%), insecticides and lacquer & varnishes (3% each),     alumina & aluminium salt, aromatic chemicals and sodium salt (2% each) and paints, fatty alcohol, bleaching powder, ayurvedic medicines and hydrogen (1% each) declined.

The index for 'Non-Metallic Mineral Products' group rose by 1.1 percent to 145.1 (Provisional) from 143.5 (Provisional) for the previous month due to higher prices of lime (4%), grey cement and white cement (3% each), glass vials (2%) and slag  cement and laminated glass (1% each).  However, the prices of concrete poles & posts (10%), graphite rods (5%), polished granite and ophthalmic lens (3%) and fibre glass & glass sheet (1%) declined.

The index for 'Basic Metals, Alloys & Metal Products' group rose by 1.7 percent to 138.8 (Provisional) from 136.5 (Provisional) for the previous month due to higher prices of silver (11 %), brass, ferro manganese and wire rods (9% each), welding rods and ferro silicon (7% each),     cylinder liners and rounds (6% each), pipes/tubes/rods/strips, iron & steel wire and rebars (5% each), angles, aluminium & alloys and GP/GC sheets (4% each), copper wire (all types), die forging & stamping, joist & beams, HRC, sponge iron, slab and billets (3% each), welded pipe, steel structures, aluminium ingots, aluminium  utensils, iron castings, fixtures, pig iron and aluminium seals (2% each) and plates, copper / copper ingots, metal containers, melting scrap, safety helmet, gold & gold ornaments, pressure cooker, aluminium coils/rolls, non-ferrous casting & forging and steel frames (1% each).  However, the prices of aluminium wire (23%), cistern fittings (16%), nuts/bolts/screw/ washers (6%),CRC (5%) and chain, ferro chrome and furniture (1% each) declined.

The index for 'Machinery & Machine Tools' group rose by 0.5 percent to 122.0 (Provisional) from 121.4 (Provisional) for the previous month due to higher prices of thresher (7%), rice mill machinery (6%), power supply (DC) (5%), fans, PVC insulated cable and heat exchanger (4% each), filtration equipment and electric generators (3% each), material handling equipments, insulators, watches, transformer, lathes, textile machinery and electrical stamping lamination (2% each) and relay / contactor, separators & driers, sewing machines, compressors, heating elements, coupling, electric motor starters, electrical signaling equipment, grinding wheels, pump & assembly, converter / inverter, washing / laundry machines, electrolytic condensers, amplifier, industrial  valves, chemical plant equipments, concrete vibrator & mixture,  fasteners and electric motors (1% each).  However, the prices of harvester (5%), ball / roller bearing (3%), conductor (2%) and fibre optic cable, drilling machines and weighing scales (1%) declined.

The index for 'Transport, Equipment & Parts' group rose by 0.8 percent to 120.9 (Provisional) from 119.9 (Provisional) for the previous month due to higher prices of radiator & coolers (7%), trolleys / tanker  and piston & compressor (6% each), axle, gauges and carburetors (5% each), clutch & clutch plates, bi-cycles, geared motor  and bus / mini bus / truck (3% each), wheels & parts and gear boxes & parts (2% each) and railway brake gear, parts of ships/boats etc. and coil assembly (ignition) (1% each). However, the prices of slider (2%) and silencer & damper (1%) declined.

FINAL INDEX FOR THE MONTH OF DECEMBER, 2010

For the month of December, 2010 the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) stood at 145.4  as compared to 143.1 (Provisional) and annual rate of inflation based on final index stood at 9.41 percent as compared to 8.43 percent (Provisional) reported on 14.01.2011.

Next date of press release: 14/04/2011 for the month of March, 2011

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