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May WPI spikes 5-month high; Double digit fuel inflation

India Infoline News Service | Mumbai |

The May WPI inflation increased to 6.01% from 5.2% in April, while the March WPI is revised to 6%

The official Wholesale Price Index for All Commodities (Base: 2004-05 = 100) for the month of May, 2014 rose by 0.8% to 181.7 (provisional) from 180.2 (provisional) for the previous month.

 

Inflation

The annual rate of inflation, based on monthly WPI, stood at 6.01% (provisional) for the month of May, 2014 (over May,2013) as compared to 5.20% (provisional) for the previous month and 4.58% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 0.78% compared to a build up rate of 0.76% 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 1.8% to 246.8 (provisional) from 242.5 (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 2.3% to 244.3 (provisional) from 238.8 (provisional) for the previous month due to higher price of coffee (23%), poultry chicken (7%), fish-inland (6%), tea and fruits & vegetables (4% each), condiments & spices, fish-marine, urad and masur (3% each), rice and moong (2% each) and milk, barley, pork, mutton and arhar (1% each).  However, the price of maize (5%), wheat and ragi (2% each) and egg, jowar and gram (1% each) declined.

 

The index for 'Non-Food Articles' group rose by 1.2% to 218.8 (provisional) from 216.3 (provisional) for the previous month due to higher price of  guar seed (13%), soyabean (10%), copra (coconut) (8%), tobacco (7%),  raw jute (5%), raw silk (3%), mesta (2%) and groundnut seed, raw cotton and cotton seed (1% each).  However, the price of gingelly seed and flowers (8% each), fodder (3%) and linseed, castor seed and sunflower (1%) declined.

 

The index for 'Minerals' group declined by 0.7% to 348.5 (provisional) from 350.8 (provisional) for the previous month due to lower price of steatite and zinc concentrate (8% each), iron ore (3%) and chromite and crude petroleum (1% each).  However, the price of copper ore (5%) and barytes (1%) moved up.

 

Fuel & Power (Weight 14.91%)

The index for this major group rose by 0.5% to 212.1 (provisional) from 211.0 (provisional) for the previous month due to higher price of electricity (agricultural) and electricity (railway traction) (3% each), electricity (commercial), electricity (domestic), light diesel oil and electricity (industry) (2% each) and high speed diesel (1%).  However, the price of furnace oil (2%) and aviation turbine fuel, LPG and petrol (1% each) declined.

 

Manufactured Products (Weight 64.97%)

The index for this major group rose by 0.5% to 154.6 (provisional) from 153.8 (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 0.5% to 170.9 (provisional) from 170.1 (provisional) for the previous month due to higher price of tea leaf (unblended) (11%), tea leaf (blended) (8%), gur and bakery products  (4% each), gola (cattle feed) and processed prawn (3% each), copra oil and ghee (2% each) and mixed spices,  khandsari and oil cakes (1% each).  However, the price of tea dust (unblended) (3%), groundnut oil and gingelly oil  (2% each) and soyabean oil and sunflower oil (1% each) declined.

 

The index for 'Beverages, Tobacco & Tobacco Products' group rose by 0.9% to 197.6 (provisional) from 195.8 (provisional) for the previous month due to higher price of dried tobacco (8%) and cigarette (2%).

 

The index for 'Textiles' group rose by 0.1% to 142.7 (provisional) from 142.6 (provisional) for the previous month due to higher price of man made fabric, jute sacking cloth, jute sacking bag and cotton fabric (1% each).  However, the price of jute yarn (4%) and tyre cord fabric and gunny and hessian cloth (1% each) declined.

 

The index for 'Wood & Wood Products' group rose by 2.4% to 188.3 (provisional) from 183.8 (provisional) for the previous month due to higher price of timber / wooden planks (5%) and plywood & fibre board (3% each).

 

The index for 'Paper & Paper Products' group rose by 2.2% to 149.7 (provisional) from 146.5 (provisional) for the previous month due to higher price of paper for printing / poster (10%), newsprint (6%), printing and writing paper (4%), card board and books/ periodicals/ journals (3% each), kraft  paper & bags and maplitho paper (2% each) and paper rolls (1%).  However, the price of cream laid woven paper (1%) declined.

 

The index for 'Leather & Leather Products' group declined by 0.3% to 144.7 (provisional) from 145.2 (provisional) for the previous month due to lower price of leather garments & jackets (3%).

 

The index for 'Rubber & Plastic Products' group rose by 0.5% to 150.1 (provisional) from 149.4 (provisional) for the previous month due to higher price of rubber products and plastic products (1% each).

 

The index for 'Chemicals & Chemical Products' group rose by 0.4% to 152.9 (provisional) from 152.3 (provisional) for the previous month due to higher price of hair / body oils, turpentine oil and ammonium sulphate  (7% each), dye & dye intermediates (2%) and antibiotics, basic organic chemicals, basic inorganic chemicals and pesticides (1% each).  However, the price of non-cyclic compound, pigment & pigment intermediates and washing soap (1% each) declined.

 

The index for 'Non-Metallic Mineral Products' group declined by 0.1% to 168.1 (provisional) from 168.2 (provisional) for the previous month due to lower price of polished granite, grey cement and railway sleeper (1% each).  However, the price of marbles (9%) moved up.

 

The index for 'Basic Metals, Alloys & Metal Products' group rose by 0.9% to 166.9 (provisional) from 165.4 (provisional) for the previous month due to higher price of zinc (5%), melting scrap and fixtures (4% each), sheets and steel castings (3% each), billets and pig iron (2% each) and rebars, wire rods, pencil  ingots, CRC, steel structures, furniture, plates, iron castings, sponge iron, gp/gc sheets, angles, HRC, metal containers and steel rods (1 % each).  However, the price of ferro manganese (3%), pressure cooker (2%) and copper / copper ingots, ferro silicon, brass and iron & steel wire (1% each) declined.

 

The index for 'Machinery & Machine Tools' group rose by 0.2% to 133.3 (provisional) from 133.0 (provisional) for the previous month due to higher price of fibre optic cable (16%), battery dry cells (12%),  regulators (5%), electric motor starters, communication equipments and lifts (3% each), pump & assembly,  insulators and electric motors (2% each) and thresher and machine tools (1% each).  However, the price of  ball/roller bearing (3%) and grinding /wet coffee machinery (2%) declined.

 

The index for 'Transport, Equipment & Parts' group rose by 0.1% to 135.8 (provisional) from 135.7 (provisional) for the previous month due to higher price of slider (3%), geared motor (2%) and fuel injection equipments and piston & compressor (1% each).  However, the price of shafts (all kinds) (2%) declined.

 

Final index for the month of March, 2014 (BASE YEAR: 2004-05=100)

For the month of  March, 2014, the final Wholesale Price Index for All Commodities (Base: 2004-05=100) stood at 180.3 as compared to 179.8 (provisional) and annual rate of inflation based on final index stood at 6.00% as compared to 5.70% respectively as reported on 14.04.2014.


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

 Month of May, 2014


Annexure-I

Commodities/Major Groups/Groups/Sub-GroupsWeightWPI May, 2014Latest month over monthBuild up from MarchYear on year
2013-142014-152013-142014-152013-142014-15
ALL COMMODITIES100.00000181.70.060.830.760.784.586.01
PRIMARY ARTICLES20.11815246.80.351.771.883.095.728.58
Food Articles14.33709244.31.502.304.204.138.259.50
Cereals3.37323230.10.38-0.220.56-0.4315.957.67
Rice1.79348237.81.591.582.282.4618.4812.75
Wheat1.11595208.1-1.38-2.25-2.24-4.5912.373.64
Pulses0.71662233.4-0.690.86-0.642.505.950.78
Vegetables1.73553234.19.196.7026.5517.995.21-0.97
Potato0.20150270.919.3419.2340.5940.651.2831.44
Onion0.17794260.90.798.53-6.327.1094.28-2.83
Fruits2.10717234.5-0.861.655.368.260.6719.40
Milk3.23818233.60.991.341.431.524.469.57
Egg, Meat & Fish2.41384289.51.423.730.702.4111.3812.47
Non-Food Articles4.25756218.8-0.571.160.430.514.884.94
Fibres0.87737237.30.181.24-0.05-0.508.418.31
Oil Seeds1.78051217.3-1.472.841.074.9812.794.82
Minerals1.52350348.5-4.70-0.66-8.980.87-7.038.84
FUEL & POWER14.91021212.1-0.930.520.16-0.987.2710.53
Liquefied petroleum gas0.91468171.8-0.56-0.92-0.80-2.777.877.11
Petrol1.09015195.7-4.60-0.61-7.97-2.44-4.7012.28
High speed diesel4.67020232.30.540.960.840.4821.2214.21
MANUFACTURED PRODUCTS64.97164154.60.130.520.400.263.253.55
Food Products9.97396170.90.300.471.031.066.632.15
Sugar1.73731187.7-0.16-0.42-0.162.347.10-1.98
Edible Oils3.04293145.80.00-0.340.27-0.480.89-0.88
Beverages, Tobacco & Tobacco Product1.76247197.60.220.920.330.976.748.45
Cotton Textiles2.60526164.10.790.002.13-0.496.317.05
Man Made Textiles2.20573134.90.240.22-0.08-0.075.125.89
Wood & Wood Products0.58744188.30.752.450.630.485.237.48
Paper & Paper Products2.03350149.70.212.180.291.424.776.47
Leather & Leather Products0.83509144.71.84-0.342.52-0.893.994.78
Rubber & Plastic Products2.98697150.11.070.471.940.134.715.56
Chemicals & Chemical Products12.01770152.9-0.210.390.000.203.184.80
Non-Metallic Mineral Products2.55597168.10.12-0.06-0.240.364.071.02
Cement & Lime1.38646164.7-0.47-0.60-1.040.373.40-3.40
Basic Metals Alloys & Metal Product10.74785166.9-0.790.91-1.09-0.42-1.982.39
Iron & Semis1.56301160.9-0.451.26-0.131.26-7.594.08
Machinery & Machine Tools8.93148133.30.460.230.930.082.832.07
Transport Equipment & Parts5.21282135.80.080.070.000.003.852.72
 
Annexure-II

Trend of Rate of Inflation for some important items during last six months
Commodities/Major Groups/Groups/Sub-GroupsWeight (%)Rate of Inflation for the last six months
May-14Apr-14Mar-14Feb-14Jan-14Dec-13
ALL COMMODITIES100.006.015.206.005.035.116.40
PRIMARY ARTICLES20.128.587.067.316.286.8010.82
Food Articles14.349.508.649.577.948.8513.73
Cereals3.377.678.318.759.229.2710.09
Rice1.7912.7512.7612.5613.6513.4113.52
Wheat1.123.644.576.186.616.79
 

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