Review for the month of July, 2019

The official Wholesale Price Index for ‘All Commodities’ (Base : 2011-12=100) for the month of July, 2019 declined by 0.2% to 121.2 (provisional) from 121.5 (provisional) for the previous month.

 

INFLATION

The annual rate of inflation, based on monthly WPI, stood at 1.08% (provisional) for the month of July, 2019 (over July ,2018) as compared to 2.02% (provisional) for the previous month and 5.27% 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 3.1% 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 0.5% to 142.1 (provisional) from 141.4 (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 1.3% to 153.7 (provisional) from 151.7 (provisional) for the previous month due to higher price of fruits & vegetables (5%), egg, maize and  jowar (4% each), pork (3%), beef and buffalo meat, bajra, wheat and condiments & spices (2% each) and barley, moong, paddy, peas/chawali, ragi and arhar (1% each). However, the price of fish-marine (7%), tea (6%), betel leaves (5%), poultry chicken (3%) and fish-inland, urad (1% each) declined.

 

The index for ‘ Non-Food Articles’ group rose by 0.1% to 128.8 (provisional) from 128.7 (provisional) for the previous month due to higher price of groundnut seed (5%), gingelly seed (sesamum) and cotton seed (3% each), hides (raw), skins (raw), floriculture (2% each) and fodder, raw rubber and castor seed (1% each). However, the price of soyabean, raw jute, mesta and sunflower (3% each), niger seed (2%) and raw cotton, gaur seed, safflower (kardi seed) and linseed (1% each) declined.

 

The index for ‘Minerals’ group declined by 2.9% to 153.4 (provisional) from 158 (provisional) for the previous month due to lower price of copper concentrate (6%), iron ore and chromite (2% each) and lead concentrate and  manganese ore (1% each). However, the price of bauxite (3%) and limestone (1%) moved up.

 

The index for ‘Crude Petroleum & Natural Gas’ group declined by 6.1% to 86.9 (provisional) from 92.5 (provisional) for the previous month due to lower price of crude petroleum (8%) and natural gas (1%).

 

FUEL & POWER (Weight 13.15%)

The index for this major group declined by 1.5% to 100.6 (provisional) from 102.1 (provisional) for the previous month. The groups and items which showed variations during the month are as follows:-

 

The index for ‘Mineral Oils’ group declined by 3.1% to 91.4 (provisional) from 94.3 (provisional) for the previous month due to lower price of LPG (15%), ATF (7%), naphtha (5%), petroleum coke (4%), HSD, kerosene and furnace oil (2% each) and petrol (1%). However, the price of bitumen (2%) moved up.

 

The index for ‘Electricity’ group rose by 0.9% to 108.3 (provisional) from 107.3 (provisional) for the previous month due to higher price of electricity (1%).

 

MANUFACTURED PRODUCTS (Weight 64.23%)

The index for this major group declined by 0.3% to 118.1 (provisional) from 118.4 (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% to 130.9 (provisional) from 130.4 (provisional) for the previous month due to higher price of molasses (271%), manufacture of processed ready to eat food (4%), maida (3%), gur, rice bran oil, sooji (rawa ) and powder milk (2% each) and manufacture of prepared animal feeds, instant coffee, cotton seed oil, spices (including mixed spices), manufacture of bakery products, ghee, wheat flour (atta), honey, manufacture of health supplements, chicken/duck, dressed – fresh/frozen, mustard oil, manufacture of starches and starch products, sunflower oil and salt (1% each). However, the price of coffee powder with chicory, ice cream, copra oil and processing and preserving of fruit and vegetables (2% each) and palm oil, other meats, preserved/processed, sugar, manufacture of macaroni, noodles, couscous and similar farinaceous products, wheat bran and soyabean oil (1% each) declined.

 

The index for ‘Manufacture of Beverages’ group declined by 0.1% to 123.2 (provisional) from 123.3 (provisional) for the previous month due to lower price of aerated drinks/soft drinks (incl. soft drink concentrates) (2%) and spirits (1%). However, the price of beer and country liquor (2% each) and rectified spirit (1%) moved up.

 

The index for ‘Manufacture of Tobacco Products’ group declined by 1% to 153.6 (provisional) from 155.1 (provisional) for the previous month due to lower price of cigarette (2%) and other tobacco products (1%).

 

The index for ‘Manufacture of Wearing Apparel’ group declined by 1.2% to 137.1 (provisional) from 138.7 (provisional) for the previous month due to lower price of manufacture of wearing apparel (woven), except fur apparel (1%) and manufacture of knitted and crocheted apparel (1%).

 

The index for ‘Manufacture of Leather and Related Products’ group declined by 0.8% to 118.3 (provisional) from 119.2 (provisional) for the previous month due to lower price of leather shoe and harness, saddles & other related items (2% each) and belt & other articles of leather (1%). However, the price of travel goods, handbags, office bags, etc. (1%) moved up.

 

The index for ‘Manufacture of Wood and of Products of Wood And Cork ‘ group declined by 0.3% to 134.2 (provisional) from 134.6 (provisional) for the previous month due to lower price of wooden splint (4%), lamination wooden sheets/veneer sheets (2%) and wood cutting, processed/sized (1%). However, the price of plywood block boards (1%) moved up.

 

The index for ‘Manufacture of Paper and Paper Products’ group declined by 0.3% to 122.3 (provisional) from 122.7 (provisional) for the previous month due to lower price of bristle paper board (6%), base paper, laminated plastic sheet and newsprint (2% each) and paper for printing & writing, paper carton/box and tissue paper (1% each). However, the price of corrugated sheet box, press board, hard board and laminated paper (1% each) moved up.

 

The index for ‘Printing and Reproduction of Recorded Media ‘ group rose by 1% to 150.1 (provisional) from 148.6 (provisional) for the previous month due to higher price of sticker plastic and printed books (2% each) and printed form & schedule and journal/periodical (1% each). However, the price of hologram (3D) (1%) declined.

 

The index for ‘Manufacture of Chemicals and Chemical Products’ group declined by 0.4% to 118.8 (provisional) from 119.3 (provisional) for the previous month due to lower price of menthol (7%), caustic soda (sodium hydroxide) (6%), tooth paste/tooth powder and carbon black (5% each), nitric acid (4%), acetic acid and its derivatives, plasticizer, amine, organic solvent, sulphuric acid, ammonia liquid, phthalic anhydride and ammonia gas (3% each), camphor, poly propylene (PP), alkyl benzene, ethylene oxide and di ammonium phosphate (2% each) and shampoo, polyester chips or polyethylene terepthalate (pet) chips, ethyl acetate, ammonium nitrate, nitrogenous fertilizer, others, polyethylene, toilet soap, organic surface active agent, superphospate/phosphatic fertilizer, others, hydrogen peroxide, dye stuff/dyes incl. dye intermediates and pigments/colours, aromatic chemicals, alcohols, viscose staple fibre, gelatine, organic chemicals, other inorganic chemicals, foundry chemical, explosive and polyester film(metalized) (1% each). However, the price of catalysts, mosquito coil, acrylic fibre and sodium silicate (2% each) and agro chemical formulation, liquid air & other gaseous products, rubber chemicals, insecticide and pesticide, poly vinyl chloride (PVC), varnish (all types), urea and ammonium sulphate (1% each) moved up.

 

The index for ‘Manufacture of Pharmaceuticals, Medicinal Chemical and Botanical Products’ group rose by 0.6% to 126.2 (provisional) from 125.5 (provisional) for the previous month due to higher price of plastic capsules (5%), sulpha drugs (3%), antidiabetic drug excluding insulin (i.e. tolbutam) (2%) and ayurvedic medicaments, anti inflammatory preparation, simvastatin and cotton wool (medicinal) (1% each). However, the price of vials/ampoule, glass, empty or filled (2%) and anti-retroviral drugs for HIV treatment and antipyretic, analgesic, anti-inflammatory formulations (1% each) declined.

 

The index for ‘Manufacture of Rubber and Plastics Products’ group rose by 0.1% to 109.2 (provisional) from 109.1 (provisional) for the previous month due to higher price of tooth brush (3%), plastic furniture, plastic button and PVC fittings & other accessories (2% each) and solid rubber tyres/wheels, rubber moulded goods, rubber tread, condoms, cycle/cycle rickshaw tyre and plastic tape (1% each). However, the price of rubberized dipped fabric (5%), polyester film (non-metalized) (3%), rubber crumb (2%) and plastic tube (flexible/non-flexible), processed rubber and polypropylene film (1% each) declined.

 

The index for ‘Manufacture of Other Non-Metallic Mineral Products’ group declined by 0.6% to 117.5 (provisional) from 118.2 (provisional) for the previous month due to lower price of graphite rod (5%), slag cement and cement superfine (2% each) and ordinary sheet glass, pozzolana cement, ordinary portland cement, asbestos corrugated sheet, glass bottle, plain bricks, clinker, non ceramic tiles and white cement (1% each). However, the price of cement blocks (concrete), granite and porcelain sanitary ware (2% each) and ceramic tiles (vitrified tiles), fibre glass incl. sheet and marble slab (1% each) moved up.

 

The index for ‘Manufacture of Basic Metals’ group declined by 1.3% to 107.3 (provisional) from 108.7 (provisional) for the previous month due to lower price of stainless steel pencil ingots/billets/slabs (9%), sponge iron/direct reduced iron (DRI), ferrochrome and aluminium disk and circles (5% each), MS pencil ingots and angles, channels, sections, steel (coated/not) (4% each), ferromanganese and alloy steel wire rods (3% each), cold rolled (CR) coils & sheets, including narrow strip, MS wire rods, MS bright bars, hot rolled (HR) coils & sheets, including narrow strip, copper metal/copper rings, ferrosilicon, silicomanganese and mild steel (MS) blooms (2% each) and rails, pig iron, GP/GC sheet, brass metal/sheet/coils, alloy steel castings, aluminium castings, stainless steel bars & rods, including flats and stainless steel tubes (1% each). However, the price of MS castings (5%), steel forgings – rough (2%) and steel cables and cast iron, castings (1% each) moved up.

 

The index for ‘Manufacture of Fabricated Metal Products, Except Machinery And Equipment’ group declined by 1.4% to 114.8 (provisional) from 116.4 (provisional) for the previous month due to lower price of cylinders (7%), electrical stamping- laminated or otherwise and metal cutting tools & accessories (3% each), copper bolts, screws, nuts and boilers (2% each) and aluminium utensils, steel structures, steel drums and barrels, steel container and jigs & fixture (1% each). However, the price of hand tools (2%) and iron/steel cap, sanitary fittings of iron & steel and steel pipes, tubes & poles (1% each) moved up.

 

The index for ‘Manufacture of Electrical Equipment’ group declined by 0.5% to 111.3 (provisional) from 111.9 (provisional) for the previous month due to lower price of electric switch (5%), electric switch gear control/starter, connector/plug/socket/holder-electric, transformer, air coolers and electrical resistors (except heating resistors) (2% each) and rotor/magneto rotor assembly, jelly filled cables, electric & other meters, copper wire and safety fuse (1% each). However, the price of electric accumulators (6%), PVC insulated cable and ACSR conductors (2% each) and incandescent lamps, fan, fibre optic cables and insulator (1% each) moved up.

 

The index for ‘Manufacture of Machinery and Equipment’ group rose by 0.4% to 113.5 (provisional) from 113.1 (provisional) for the previous month due to higher price of air or vacuum pump (3%), conveyors – non-roller type, threshers, pump sets without motor, precision machinery equipment/form tools and air filters (2% each) and moulding machine, pharmaceutical machinery, sewing machines, roller and ball bearings, motor starter, manufacture of bearings, gears, gearing and driving elements and agricultural tractors (1% each). However, the price of deep freezers (15%), air gas compressor including compressor for refrigerator, cranes, road roller and hydraulic pump (2% each) and soil preparation & cultivation machinery (other than tractors), harvesters, lathes and hydraulic equipment (1% each) declined.

 

The index for ‘Manufacture of Motor Vehicles, Trailers and Semi-Trailers’ group declined by 0.1% to 114 (provisional) from 114.1 (provisional) for the previous month due to lower price of seat for motor vehicles (14%), cylinder liners (5%), piston ring/piston and compressor (2%) and brake pad/brake liner/brake block/brake rubber, others, gear box and parts, crankshaft and release valve (1% each). However, the price of chassis of different vehicle types (4%), body (for commercial motor vehicles) (3%), engine (2%) and axles of motor vehicles and filter element (1% each) moved up.

 

The index for ‘Manufacture of Other Transport Equipment’ group declined by 0.4% to 116.4 (provisional) from 116.9 (provisional) for the previous month due to lower price of diesel/electric locomotive and motor cycles (1% each). However, the price of wagons (1%) moved up.

 

The index for ‘Manufacture of Furniture’ group rose by 0.2% to 128.7 (provisional) from 128.4 (provisional) for the previous month due to higher price of steel shutter gate (1%). However, the price of hospital furniture (1%) declined.

 

The index for ‘Other Manufacturing’ group rose by 2% to 108.3 (provisional) from 106.2 (provisional) for the previous month due to higher price of silver (3%), gold & gold ornaments and cricket ball (2% each) and football (1%). However, the price of plastic moulded-others toys (2%) and stringed musical instruments (incl. santoor, guitars, etc.) (1%) declined.

 

 

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 Products’ from Manufactured Products group decreased from 5.04% in June, 2019 to 4.54% in July, 2019.

 

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

For the month of May, 2019, the final Wholesale Price Index for ‘All Commodities’ (Base: 2011-12=100) stood at 121.6 as compared to 121.2 (provisional) and annual rate of inflation based on final index stood at 2.79% as compared to 2.45%  (provisional) respectively as reported on 14.06.2019.

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Next date of press release: 16/09/2019 for the month of August, 2019

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

Annexure-I

Wholesale Price Index and Rates of Inflation (Base Year: 2011-12=100)

                             Month of July, 2019

 

Annexure-II

Trend of Rate of Inflation for some important items during last six months