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

The official Wholesale Price Index for ‘All Commodities’ (Base: 2004-05 = 100) for the month of January, 2014 declined by 0.2 percent to 178.9 (provisional) from 179.2 (provisional) for the previous month.

INFLATION

The annual rate of inflation, based on monthly WPI, stood at 5.05% (provisional) for the month of January, 2014 (over January, 2013) as compared to 6.16% (provisional) for the previous month and 7.31% 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 5.78% 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 1.9 percent to 238.9 (provisional) from 243.6 (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 2.7 percent to 233.6 (provisional) from 240.1 (provisional) for the previous month due to lower price of fruits & vegetables (11%), maize (3%), ragi (2%) and gram, coffee, arhar and tea (1% each). However, the price of poultry chicken (5%), pork (3%), urad and egg (2% each) and moong, bajra,   condiments & spices, masur, fish-inland, beef & buffalo meat and fish-marine (1% each) moved up.

The index for `Non-Food Articles` group rose by 0.1 percent to 216.0 (provisional) from 215.8 (provisional) for the previous month due to higher price of guar seed (8%), raw cotton (6%), copra (coconut) (4%), mesta (3%), castor seed (2%) and fodder, linseed and raw jute (1% each). However, the price of logs & timber (13%), flowers (11%), raw silk (9%), safflower (kardi seed) (4%), gingelly seed (3%), soyabean (2%) and tobacco, cotton seed and raw rubber (1% each) declined.

The index for `Minerals` group declined by 0.4 percent to 352.9 (provisional) from 354.2 (provisional) for the previous month due to lower price of barytes (3%) and crude petroleum (1%). However, the price of copper ore (5 %), steatite (4%), zinc concentrate (3%) and chromite (2%) moved up.

FUEL & POWER (Weight 14.91%)

The index for this major group rose by 0.7 percent to 212.8 (provisional) from 211.3 (provisional) for the previous month due to higher price of lpg (5%), aviation turbine fuel and petrol (2% each) and furnace oil, kerosene, high speed diesel and bitumen (1% each).

MANUFACTURED PRODUCTS (Weight 64.97%)

The index for this major group rose by 0.5 percent to 152.6 (provisional) from 151.9 (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 declined by 0.4 percent to 169.1(provisional) from 169.7 (provisional) for the previous month due to lower price of vanaspati and gur (3% each), rice bran oil, khandsari and groundnut oil (2% each) and gingelly oil, wheat flour (atta), gola (cattle feed), sugar, oil cakes, sunflower oil and mixed spices (1% each). However, the price of copra oil (4%), processed prawn (3%), cotton seed oil (2%) and tea dust (blended),     ghee, powder milk and sooji (rawa) (1% each) moved up.

The index for `Beverages, Tobacco & Tobacco Products` group rose by 1.2 percent to 188.1 (provisional) from 185.9 (provisional) for the previous month due to higher price of dried tobacco (5%), rectified spirit (4%), cigarette (3%) and soft drinks & carbonated water (1%).

The index for `Textiles` group rose by 0.5 percent to 140.9 (provisional) from 140.2 (provisional) for the previous month due to higher price of tyre cord fabric (4%) and jute sacking cloth (1%). However, the price of cotton yarn   (1%) declined.

The index for `Wood & Wood Products` group rose by 1.8 percent to 179.0 (provisional) from 175.8 (provisional) for the previous month due to higher price of processed wood (8%).

The index for `Paper & Paper Products` group rose by 0.3 percent to 144.7 (provisional) from 144.3 (provisional) for the previous month due to higher price of books/ periodicals/ journals (3%), laminated paper and card board (2% each) and computer stationery, cream laid woven paper, paper rolls and newspaper (1% each). However, the price of paper pulp (6%), corrugated sheet boxes (2%) and paper cartons/boxes and kraft paper & bags (1% each) declined.

The index for `Leather & Leather Products` group rose by 0.2 percent to 144.3 (provisional) from 144.0 (provisional) for the previous month due to higher price of leather handbags/ wallet (4%) and footwear/safety boot and leather shoe upper (1% each). However, the prices of leather gloves (6%) and leather sole (1%) declined.

The index for `Rubber & Plastic Products` group rose by 0.3 percent to 148.3 (provisional) from 147.8 (provisional) for the previous month due to higher price of tubes (3%) and plastic products (1%).

The index for `Chemicals & Chemical Products` group rose by 0.5 percent to 150.0 (provisional) from 149.2 (provisional) for the previous month due to higher price of basic organic chemicals (5%), hair / body oils, washing powder and rubber chemicals (2% each) and vitamins, thermocol, washing soap, dye & dye intermediates and turpentine oil (1% each). However, the price of synthetic resin (4%), non-cyclic compound (3%) and pigment & pigment intermediates (2%) declined.

The index for `Basic Metals, Alloys & Metal Products` group rose by 1.4 percent to 165.9 (provisional) from 163.6 (provisional) for the previous month due to higher price of sheets (16%), steel castings, silver and gold & gold ornaments (3% each), melting scrap, aluminium and pig iron (2% each) and steel rods, sponge iron, hrc, plates,     steel structures, rounds, angles, wire rods, gp/gc sheets, ferro silicon, crc and metal containers (1% each). However, the price of ferro manganese and brass (1% each) declined.

The index for `Machinery & Machine Tools` group rose by 0.3 percent to 132.5 (provisional) from 132.1 (provisional) for the previous month due to higher price of control equipments (6%), loader and electrical wires (4 % each), conductor (3%) and industrial furnaces, textile machinery, pump & assembly, electrical pumps, electric motors, ball/roller bearing and electronic pcb /micro circuit (1% each). However, the price of sprinkler (7%),   communication equipments (3%), fans (2%) and air conditioner & refrigerators and electric switch gears (1% each) declined.

The index for `Transport, Equipment & Parts` group rose by 0.1 percent to 135.8 (provisional) from 135.6 (provisional) for the previous month due to higher price of auto parts (1%).

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

For the month of November, 2013, the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) and annual rate of inflation remained unchanged at its provisional level of 181.5 and 7.52 percent respectively as reported on 16.12.2013.

Next date of press release: 14/03/2014 for the month of February, 2014

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

This press release is available at our home page http://eaindustry.nic.in

Annexure-I

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

Month of January, 2014