Index Numbers of Wholesale Price in India (BASE: 2004-05=100), Review for the Month of August, 2013

The official Wholesale Price Index for ‘All Commodities’ (Base: 2004-05 = 100) for the month of August, 2013 rose by 1.7 percent to 177.5 (provisional) from 175.4 (provisional) for the previous month.

INFLATION

The annual rate of inflation, based on monthly WPI, stood at 6.10% (provisional) for the month of August, 2013 (over August, 2012) as compared to 5.79% (provisional) for the previous month and 8.01% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 3.91% compared to a build up rate of 4.35% 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 3.8 percent to 247.8 (provisional) from 238.8 (provisional) for the previous month. The groups and items which showed variations during the month are as follows:-

The index for `Food Article ` group rose by 5.3 percent to 250.3 (provisional) from 237.7 (provisional) for the previous month due to higher price of fish-inland (22%), fruits & vegetables (13%), ragi and beef & buffalo meat   (3% each), milk (2%) and rice, mutton, poultry chicken and pork (1% each). However, the price of bajra and gram   (4% each), tea (3%), jowar (2%) and moong, egg and masur (1% each) declined.

The index for `Non-Food Articles` group declined by 0.5 percent to 209.6 (provisional) from 210.7 (provisional) for the previous month due to lower price of soyabean (12%), guar seed (10%), groundnut seed (5%), raw jute (4%), safflower, logs & timber and linseed (3% each), niger seed and rape & mustard seed (2% each) and mesta (1%). However, the price of flowers (15%), copra (coconut) (5%), raw cotton, coir fibre and raw silk (3% each), sunflower and cotton seed (2% each) and fodder and castor seed (1% each) moved up.

The index for `Minerals` group rose by 0.7 percent to 330.9 (provisional) from 328.5 (provisional) for the previous month due to higher price of dolomite (10%), sillimanite (6%), crude petroleum and limestone (1% each). However, the price of barytes (13%), zinc concentrate (5%) and chromite and copper ore (1% each) declined.

FUEL & POWER (Weight 14.91%)

The index for this major group rose by 1.3 percent to 202.3 (provisional) from 199.8 (provisional) for the previous month due to higher price of aviation turbine fuel (7%), light diesel oil (4%), kerosene, lpg and petrol (3% each) and       naphtha, bitumen and high speed diesel (2% each). However, the price of furnace oil (2%) declined.

MANUFACTURED PRODUCTS (Weight 64.97%)

The index for this major group declined by 0.1 percent to 150.0 (provisional) from 150.2 (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 0.7 percent to 167.7 (provisional) from 168.9 (provisional) for the previous month due to lower price of tea leaf (blended) (15%), tea leaf (unblended) (6%), oil cakes (4%),     groundnut oil (2%) and bakery products, mixed spices, cotton seed oil, palm oil and gola (cattle feed) (1% each). However, the price of copra oil (9%), gur, coffee powder, processed prawn and sooji (rawa) (2% each) and maida,  gingelly oil, rice bran oil and sugar (1% each) moved up.

The index for `Beverages, Tobacco & Tobacco Products` group declined by 0.1 percent to 181.6 (provisional) from 181.8 (provisional) for the previous month due to lower price of chewing tobacco (scented or not) and dried tobacco (2% each) and beer (1%). However, the price of rectified spirit (1%) moved up.

The index for `Textiles` group rose by 0.7 percent to 137.3 (provisional) from 136.4 (provisional) for the previous month due to higher price of cotton yarn and man made fibre (2% each) and woollen textiles and tyre cord fabric (1 % each). However, the price of gunny and hessian cloth, jute sacking cloth and jute sacking bag (1% each) declined.

The index for `Wood & Wood Products` group rose by 0.8 percent to 177.2 (provisional) from 175.8 (provisional) for the previous month due to higher price of timber/ wooden planks, plywood & fibre board and processed wood (1% each).

The index for `Paper & Paper Products` group declined by 0.1 percent to 140.3 (provisional) from 140.5 (provisional) for the previous month due to lower price of maplitho paper and paper for printing / poster (1% each). However, the price of laminated paper (4%) and paper cartons / boxes (2%) moved up.

The index for ` Leather & Leather Products ` group declined by 0.1 percent to 142.3 (provisional) from 142.5 (provisional) for the previous month due to lower price of leather footwear (1%).

The index for `Non-Metallic Mineral Products` group declined by 1.3 percent to 164.3 (provisional) from 166.4 (provisional) for the previous month due to lower price of white cement (3%), grey cement (2%) and slag cement (1%). However, the price of marbles (3%) moved up.

The index for `Basic Metals, Alloys & Metal Products` group rose by 0.2 percent to 162.7 (provisional) from 162.3 (provisional) for the previous month due to higher price of silver and gold & gold ornaments (5% each), metal containers (3%), steel structures, aluminium and ferro manganese (2% each) and copper / copper ingots (1%). However, the price of furniture (10%), sponge iron (3%), melting scrap (2%) and ferro silicon, pencil ingots, wire rods, gp/gc sheets, angles and billets (1%) declined.

The index for `Machinery & Machine Tools` group declined by 0.5 percent to 130.8 (provisional) from 131.5 (provisional) for the previous month due to lower price of electric generators (12%), fibre optic cable (7%),     electronic pcb /micro circuit (4%), battery dry cells, t.v. accessories and boiler & accessories (2% each) and     batteries and hydraulic equipment (1% each). However, the price of ball/roller bearing (7%) and pvc insulated cable,     pump & assembly, heat exchanger, material handling equipments, capacitors, harvester and electrical pumps (1 % each) moved up.

The index for `Transport, Equipment & Parts` group rose by 0.4 percent to 133.7 (provisional) from 133.2 (provisional) for the previous month due to higher price of auto parts and motor vehicles (1% each). However, the price of railway axle & wheel (2%) and parts of ships/boats etc. (1%) declined.

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

For the month of June, 2013, the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) stood at 173.2 as compared to 172.7 (provisional) and annual rate of inflation based on final index stood at 5.16 percent as compared to 4.86 percent respectively as reported on 15.07.2013.

Annexure-I

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