Index Numbers of Wholesale Price in India (Base: 2011-12=100) Review for the month of May, 2019

The official Wholesale Price Index for ‘All Commodities’ (Base: 2011-12=100) for the month of May, 2019 rose by 0.2 percent to 121.2 (provisional) from 120.9 (provisional) for the previous month.

INFLATION

The annual rate of inflation, based on monthly WPI, stood at 2.45% (provisional) for the month of May,2019 (over May,2018) as compared to 3.07% (provisional) for the previous month and 4.78% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 1.08% compared to a build up rate of 1.72% 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 0.2 percent to 139.5 (provisional) from 139.2 (provisional) for the previous month. The groups and items which showed variations during the month are as follows:-

 The index for ‘Food Articles’ group remained unchanged at its previous month level of 150.1. The items which showed decrease during the month are betel leaves (5%), fruits & vegetables (2%) and tea and wheat (1% each). The items which showed increase during the month are fish-marine (7% each), arhar (5%), urad, peas/chawali and bajra (4% each), egg (3% each), masur and moong (2% each) and gram, barley, ragi and fish-inland  (1% each).

The index for ‘ Non-Food Articles’ group rose by 0.9 percent to 127.8 (provisional) from 126.7 (provisional) for the previous month due to higher price of floriculture and safflower (kardi seed) (6% each), raw rubber, hides (raw) and groundnut seed (4% each), linseed (3%) and  raw jute, mesta, fodder, cotton seed, sunflower, raw silk and rape & mustard seed (1% each). However, the price of copra (coconut) (3%), skins (raw), soyabean and coir fibre (2% each) and gingelly seed (sesamum), niger seed and gaur seed (1% each) declined.

The index for ‘Minerals’ group declined by 4.2 percent to 138 (provisional) from 144 (provisional) for the previous month due to lower price of copper concentrate (14%), bauxite (10%) and zinc concentrate, manganese ore and chromite (2% each). However, the price of iron ore (14%), lead concentrate (2%) and  limestone (1%) moved up.

The index for ‘Crude Petroleum & Natural Gas’ group rose by 3.5 percent to 92.8 (provisional) from 89.7 (provisional) for the previous month due to higher price of crude petroleum (5%) and  natural gas (1%).

FUEL & POWER (Weight 13.15%)

The index for this major group rose by 0.6 percent to 103.4 (provisional) from 102.8 (provisional) for the previous month. The groups and items which showed variations during the month are as follows:-

The index for ‘Mineral Oils’ group rose by 1 percent to 96.4 (provisional) from 95.4 (provisional) for the previous month due to higher price of naphtha (4%), ATF (3%) and LPG, kerosene, furnace oil and HSD (1% each).

MANUFACTURED PRODUCTS (Weight 64.23%)

The index for this major group rose by 0.1 percent to 118.4 (provisional) from 118.3 (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 0.4 percent to 129.2 (provisional) from 128.7 (provisional) for the previous month due to higher price of groundnut oil (5%), gur, vanaspati and  manufacture of macaroni, noodles, couscous and similar farinaceous products (4% each), chicken/duck, dressed – fresh/frozen , bagasse, molasses and powder milk (3% each), coffee powder with chicory, manufacture of prepared animal feeds, gram powder (besan), sugar, manufacture of starches and starch products, castor oil and butter (2% each) and processing and preserving of fish, crustaceans and molluscs and products thereof, processing and preserving of fruit and vegetables, honey, spices (including mixed spices), mustard oil, salt, basmati rice and rice products (1% each). However, the price of copra oil (3%), rapeseed oil, processed tea, maida and sooji (rawa ) (2% each) and palm oil, instant coffee, manufacture of health supplements, manufacture of processed ready to eat food, sunflower oil, rice bran oil, wheat flour (atta) and other meats, preserved/processed (1% each) declined.

The index for ‘Manufacture Of Beverages’ group declined by 0.2 percent to 122.5 (provisional) from 122.7 (provisional) for the previous month due to lower price of aerated drinks/soft drinks (incl. soft drink concentrates), bottled mineral water and spirits (1% each). However, the price of beer, country liquor and rectified spirit (1% each) moved up.

The index for ‘Manufacture Of Tobacco Products’ group declined by 1.6 percent to 152.1 (provisional) from 154.6 (provisional) for the previous month due to lower price of other tobacco products (4%).

The index for ‘Manufacture Of Textiles’ group rose by 0.3 percent to 119.7 (provisional) from 119.4 (provisional) for the previous month due to higher price of manufacture of knitted and crocheted fabrics (3%) and manufacture of cordage, rope, twine and netting and weaving & finishing of textiles (1% each). However, the price of viscose yarn (1%) declined.

The index for ‘Manufacture Of Wearing Apparel’ group rose by 0.5 percent to 139.2 (provisional) from 138.5 (provisional) for the previous month due to higher price of manufacture of wearing apparel (woven), except fur apparel (1%). However, the price of manufacture of knitted and crocheted apparel (1%) declined.

The index for ‘Manufacture Of Leather And Related Products’ group declined by 0.9 percent to 119.7 (provisional) from 120.8 (provisional) for the previous month due to lower price of chrome tanned leather and leather shoe (2% each). However, the price of travel goods, handbags, office bags, etc. (3%) and vegetable tanned leather and waterproof footwear (1% each) moved up.

The index for ‘Manufacture Of Wood And Of Products Of Wood And Cork ‘ group rose by 0.5 percent to 134.3 (provisional) from 133.6 (provisional) for the previous month due to higher price of wooden panel and wood cutting, processed/sized (2% each) and lamination wooden sheets/veneer sheets and particle boards (1% each). However, the price of wooden block – compressed or not (3%) declined.

The index for ‘Manufacture Of Paper And Paper Products’ group declined by 0.2 percent to 123.5 (provisional) from 123.7 (provisional) for the previous month due to lower price of newsprint (3%), laminated paper and base paper (2% each) and tissue paper, kraft paper, card board and corrugated paper board (1% each). However, the price of duplex paper and poster paper (1% each) moved up.

The index for ‘Printing And Reproduction Of Recorded Media ‘ group rose by 0.5 percent to 148.3 (provisional) from 147.5 (provisional) for the previous month due to higher price of printed labels/posters/calendars (5%). However, the price of sticker plastic (2%) declined.

The index for ‘Manufacture Of Pharmaceuticals, Medicinal Chemical And Botanical Products’ group rose by 0.9 percent to 125.5 (provisional) from 124.4 (provisional) for the previous month due to higher price of anti cancer drugs (25%), anti-retroviral drugs for HIV treatment (4%), vials/ampoule, glass, empty or filled (3%), sulpha drugs and anti inflammatory preparation (2% each) and vaccine for polio and antibiotics & preparations thereof (1% each). However, the price of antipyretic, analgesic, anti-inflammatory formulations (2%) declined.

The index for ‘Manufacture Of Rubber And Plastics Products’ group declined by 1 percent to 109.2 (provisional) from 110.3 (provisional) for the previous month due to lower price of plastic components and rubber components & parts (4% each), plastic box/container, medium & heavy commercial vehicle tyre and elastic webbing (3% each), tractor tyre and rubber moulded goods (2% each) and motor car tyre, PVC fittings & other accessories, polythene film, acrylic/plastic sheet, polyester film (non-metalized), rubber tread, solid rubber tyres/wheels, plastic bag and plastic film (1% each). However, the price of plastic button (5%), tooth brush, plastic furniture, plastic tube (flexible/non-flexible) and polypropylene film (3% each), processed rubber and conveyer belt (fibre based) (2% each) and plastic bottle, plastic tank, rubber cloth/sheet, 2/3 wheeler rubber tube and thermocol (1% each) moved up.

The index for ‘Manufacture Of Other Non-Metallic Mineral Products’ group rose by 1.4 percent to 118.4 (provisional) from 116.8 (provisional) for the previous month due to higher price of slag cement and pozzolana cement (4% each), ordinary portland cement (3%), porcelain sanitary ware and cement superfine (2% each) and clinker, glass bottle, graphite rod, asbestos corrugated sheet, railway sleeper and stone, chip (1% each). However, the price of ordinary sheet glass, toughened glass, marble slab, non ceramic tiles, lime and calcium carbonate, fibre glass incl. sheet, opthalmic lens and granite (1% each) declined.

The index for ‘Manufacture Of Basic Metals’ group declined by 0.8 percent to 109.7 (provisional) from 110.6 (provisional) for the previous month due to lower price of MS castings, aluminium disk and circles and mild steel (MS) blooms (3% each), sponge iron/direct reduced iron (DRI), aluminium ingot and MS pencil ingots (2% each) and  ferrosilicon, hot rolled (HR) coils & sheets, including narrow strip, MS bright bars, aluminium shapes – bars/rods/flats, alloy steel wire rods, aluminium powder, stainless steel coils, strips & sheets, pig iron, GP/GC sheet, ferromanganese, copper shapes – bars/rods/plates/strips and aluminium alloys (1% each). However, the price of ferrochrome (3%), silicomanganese (2%) and steel forgings – rough, stainless steel bars & rods, including flats, alloy steel castings and MS wire rods (1% each) moved up.

The index for ‘Manufacture Of Fabricated Metal Products, Except Machinery And Equipment’ group declined by 0.3 percent to 116.9 (provisional) from 117.2 (provisional) for the previous month due to lower price of sanitary fittings of iron & steel (7%), electrical stamping- laminated or otherwise (4%), boilers (3%) and bolts, screws, nuts & nails of iron & steel, metal cutting tools & accessories, steel structures and cylinders (1% each). However, the price of bracket and steel door (3% each), forged steel rings, hand tools and pressure cooker (2% each) and stainless steel tank, jigs & fixture and steel pipes, tubes & poles (1% each) moved up.

The index for ‘Manufacture Of Computer, Electronic And Optical Products’ group rose by 0.4 percent to 111.4 (provisional) from 111 (provisional) for the previous month due to higher price of electro-diagnostic apparatus, used in medical, surgical, dental or veterinary sciences and meter (non-electrical) (3% each) and capacitors, air conditioner and  sunglasses (1% each). However, the price of modems (6%) and electronic printed circuit board (PCB)/micro circuit (2%) declined.

The index for ‘Manufacture Of Machinery And Equipment’ group rose by 0.5 percent to 112.7 (provisional) from 112.1 (provisional) for the previous month due to higher price of deep freezers (9%), drilling machine and pressure vessel and tank for fermentation & other food processing (6% each), injection pump (5%), separator and rice mill machinery (4% each), open end spinning machinery (3%), air or vacuum pump and furnaces & ovens (2% each) and centrifugal pumps, soil preparation & cultivation machinery (other than tractors), air gas compressor including compressor for refrigerator, pharmaceutical machinery, oil pump, hydraulic pump, sewing machines, chemical equipment & system and filtration equipment (1% each). However, the price of conveyors – non-roller type (3%), dumper and moulding machine (2% each) and gasket kit, roller and ball bearings, cranes, manufacture of bearings, gears, gearing and driving elements and excavator (1% each) declined.

The index for ‘Manufacture Of Motor Vehicles, Trailers And Semi-Trailers’ group rose by 0.3 percent to 113.3 (provisional) from 113 (provisional) for the previous month due to higher price of brake pad/brake liner/brake block/brake rubber, others (3%), shock absorbers (2%) and piston ring/piston and compressor, wheels/wheels & parts, body (for commercial motor vehicles), shafts of all kinds, silencer and damper, chain, gear box and parts and engine (1% each). However, the price of axles of motor vehicles (2%) and cylinder liners (1%) declined.

The index for ‘Manufacture Of Other Transport Equipment’ group rose by 1.2 percent to 114.8 (provisional) from 113.4 (provisional) for the previous month due to higher price of motor cycles (2%), wagons (1%). However, the price of bicycles of all types (1%) declined.

The index for ‘Manufacture Of Furniture’ group rose by 0.1 percent to 129.4 (provisional) from 129.3 (provisional) for the previous month due to higher price of wooden furniture and iron/steel furniture (1% each). However, the price of foam and rubber mattress (2%) and steel shutter gate (1%) declined.

The index for ‘Other Manufacturing’ group declined by 0.1 percent to 106.3 (provisional) from 106.4 (provisional) for the previous month due to lower price of silver (1%). However, the price of non mechanical toys and stringed musical instruments (incl. santoor, guitars, etc.) (2% each) and cricket bat, football and plastic moulded-others toys (1% each) moved up.

 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 4.95% in April, 2019 to 5.10% in May, 2019.

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

For the month of March, 2019, the final Wholesale Price Index for ‘All Commodities’ (Base: 2011-12=100) stood at 119.9 as compared to 120 (provisional) and annual rate of inflation based on final index stood at 3.10 percent as compared to 3.18 percent (provisional) respectively as reported on 15.04.2019.