The official Wholesale Price Index for ‘All Commodities’ (Base: 2004-05 = 100) for the month of August, 2014 rose by 0.6 percent to 185.7 (provisional) from 184.6 (provisional) for the previous month.

INFLATION 

The annual rate of inflation, based on monthly WPI, stood at 3.74% (provisional) for the month of August, 2014 (over August,2013) as compared to 5.19% (provisional) for the previous month and 6.99% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 3.00% compared to a build up rate of 5.23% 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 2.0 percent to 261.7 (provisional) from 256.6 (provisional) for the previous month. The groups and items which showed variations during the month are as follows:- 

The index for ‘Food Articles’ group rose by 2.6 percent to 265.4 (provisional) from 258.6 (provisional) for the previous month due to higher price of fruits & vegetables (7%), urad and condiments & spices (4% each), arhar, barley and milk (3 % each), masur, gram and ragi (2% each) and jowar, rice, coffee, poultry chicken, fish-marine and wheat (1% each).  However, the price of tea (9%), fish-inland (7%), maize and pork (2% each) and egg and bajra (1% each) declined. 

The index for ‘Non-Food Articles’ group rose by 0.3 percent to 218.7 (provisional) from 218.1 (provisional) for the previous month due to higher price of flowers (15%), copra (coconut) (14%), gingelly seed (6%), niger seed (5%), groundnut seed and linseed (2% each) and castor seed, rape & mustard seed and cotton seed (1% each).  However, the price of raw rubber (6 %), soyabean, raw silk and raw jute (4% each), raw cotton (3%), fodder (2%) and sunflower (1%) declined. 

The index for ‘Minerals’ group rose by 0.3 percent to  347.0 (provisional) from 346.1 (provisional) for the previous month due to higher price of barytes (10%), iron ore (3%), steatite and magnesite (2% each) and chromite (1%).  However, the price of sillimanite (23%), copper ore (5%), zinc concentrate (4%) declined.  

FUEL & POWER (Weight 14.91%) 

The index for this major group declined by 0.3 percent to 214.0 (provisional) from 214.7 (provisional) for the previous month due to lower price of petrol and furnace oil (3% each) and bitumen (2%).  However, the price of high speed diesel (1%) moved up. 

MANUFACTURED PRODUCTS (Weight 64.97%) 

The index for this major group rose by 0.3 percent to 155.8 (provisional) from 155.4 (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 0.1 percent to 174.7 (provisional) from 174.6 (provisional) for the previous month due to higher price of coffee powder (9%), copra oil (4%), gram powder (besan) (2%) and sugar, khandsari and sooji (rawa) (1% each).  However, the price of tea dust (blended) (7%), mixed spices and tea leaf (blended) (2% each) and  bakery products, soyabean oil, gur and gingelly oil (1% each) declined. 

The index for ‘Beverages, Tobacco & Tobacco Products’ group rose by 0.5 percent to 199.6 (provisional) from 198.7 (provisional) for the previous month due to higher price of dried tobacco (6%), chewing tobacco (scented or not ) (2%) and beer and rectified spirit (1% each). 

The index for ‘Textiles’ group rose by 0.1 percent to 144.2 (provisional) from 144.1 (provisional) for the previous month due to higher price of tyre cord fabric (4%), jute sacking cloth and man made fabric (2% each) and jute yarn and man made fibre (1% each).  However, the price of gunny and hessian cloth (4%) and cotton yarn and jute sacking bag (1% each) declined. 

The index for ‘Paper & Paper Products’ group rose by 0.2 percent to 149.6 (provisional) from 149.3 (provisional) for the previous month due to higher price of paper cartons / boxes (2%) and printing and writing paper (1%). 

The index for ‘Leather & Leather Products’ group rose by 1.7 percent to 146.7 (provisional) from 144.3 (provisional) for the previous month due to higher price of leather footwear (3%). 

The index for ‘Rubber & Plastic Products’ group rose by 0.2 percent to 150.9 (provisional) from 150.6 (provisional) for the previous month due to higher price of plastic films & sheets and football (3% each), rubber footwear and reclaimed rubber (2% each) and plastic rolls and hdpe bag (1% each).  However, the price of plastic containers (3%) and hdpe woven sacks (2%) and pvc rigid and polyester chips (1% each) declined. 

The index for ‘Chemicals & Chemical Products’ group rose by 0.5 percent to 154.1 (provisional) from 153.3 (provisional) for the previous month due to higher price of rubber chemicals (5%), pesticides (2%) and agarbattis, explosives,     turpentine oil, synthetic resin, dye & dye intermediates, vitamins, washing soap, organic manure, basic organic chemicals,  basic inorganic chemicals and non-cyclic compound (1% each).  However, the price of lacquer & varnishes, paints and washing powder (1% each) declined. 

The index for ‘Non-Metallic Mineral Products’ group rose by 0.8 percent to 169.5 (provisional) from 168.1 (provisional) for the previous month due to higher price of marbles (3%) and grey cement and railway sleeper (2% each).  However, the price of bricks & tiles (1%) declined. 

The index for ‘Basic Metals, Alloys & Metal Products’ group declined by 0.2 percent to 166.4 (provisional) from 166.8 (provisional) for the previous month due to lower price of wire rods and pig iron (3% each), melting scrap (2%) and      sponge iron, rounds, plates, steel rods, angles, pencil  ingots, crc, gold & gold ornaments, joist & beams, fixtures and ferro chrome (1% each).  However, the price of steel castings, ferro manganese and nuts/bolts/screw/ washers (2% each) and aluminium, silver and rebars (1% each) moved up. 

The index for ‘Machinery & Machine Tools’ group rose by 0.4 percent to 134.5 (provisional) from 133.9 (provisional) for the previous month due to higher price of pvc insulated cable (6%), heat exchanger (4%), grinding /wet coffee machinery and loader (2% each) and conductor, insulators, electric switch gears, pump & assembly, electric switches and battery dry cells (1% each).  However, the price of washing / laundry machines (3%), ball/roller bearing and microwave oven (2% each) and fibre optic cable, material handling equipments and machine tools (1% each) declined. 

The index for ‘Transport, Equipment & Parts’ group rose by 0.1 percent to 136.0 (provisional) from 135.8 (provisional) for the previous month due to higher price of bi-cycles (2%) and bus / mini bus / truck (1%). 

FINAL INDEX FOR THE MONTH OF JUNE, 2014 (BASE YEAR: 2004-05=100) 

For the month of  June, 2014, the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) stood at 183.0 as compared to 182.6 (provisional) and annual rate of inflation based on final index stood at 5.66 percent as compared to 5.43 percent respectively as reported on 16.06.2014.

Annexure-I

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

Month of August, 2014