The official Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) for the month of July, 2015 declined by 0.6 percent to 177.5 (provisional) from 178.6 (provisional) for the previous month.

INFLATION

The annual rate of inflation, based on monthly WPI, stood at -4.05% (provisional) for the month of July, 2015 (over July, 2014) as compared to -2.40% (provisional) for the previous month and 5.41% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 0.80% compared to a build up rate of 2.61% 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 0.5 percent to 247.2 (provisional) from 248.4 (provisional) for the previous month.  The groups and items which showed variations during the month are as follows:-

The index for ‘Food Articles’ group declined by 0.6 percent to 255.7 (provisional) from 257.3 (provisional) for the previous month due to lower price of fish-inland (5%), fruits & vegetables, jowar and poultry chicken (3% each), ragi (2%) and       egg, fish-marine, pork and bajra (1% each).  However, the price of urad (5%), masur and arhar (4% each), beef & buffalo meat and tea (3% each), gram and condiments & spices (2% each) and wheat, barley, coffee and moong (1% each) moved up.

The index for ‘Non-Food Articles’ group declined by 1.3 percent to 215.6 (provisional) from 218.5 (provisional) for the previous month due to lower price of raw silk (10%), copra (coconut) (8%), guar seed (7%), soyabean (6%), raw rubber and groundnut seed (3% each), sunflower and flowers (2% each) and castor seed and raw cotton (1% each).  However, the price of niger seed (27 %), safflower (kardi seed)  (10%), fodder (4%), rape& mustard seed and raw jute (2% each) and linseed and coir fibre (1 % each) moved up.

The index for ‘Minerals’ group rose by 3.0 percent to 255.9 (provisional) from 248.5 (provisional) for the previous month due to higher price of zinc concentrate (9%), crude petroleum (8%), magnesite (3%) and chromite (2%).  However, the price of sillimanite and copper ore (5% each), manganese ore (3%) and iron ore (2%) declined.

FUEL & POWER (Weight 14.91%)

The index for this major group declined by 2.0 percent to 187.1 (provisional) from 191.0 (provisional) for the previous month due to lower price of  furnace oil (6%), aviation turbine fuel, high speed diesel and naphtha (4% each) and petrol (1%).

MANUFACTURED PRODUCTS (Weight 64.97%)

The index for this major group declined by 0.3 percent to 153.7 (provisional) from 154.2 (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 0.6 percent to 172.0 (provisional) from 173.1 (provisional) for the previous month due to lower price of copra oil, sugar and khandsari (4% each), tea dust (unblended) and vanaspati (3% each),     tea leaf (blended) and palm oil (2% each) and sunflower oil, rice bran oil, gram powder (besan), powder milk, tea dust (blended), soyabean oil and ghee (1% each).  However, the price of tea leaf (unblended) (8%), gingelly oil (7%), mustard & rapeseed oil and bakery products (3% each), groundnut oil and oil cakes (2% each) and sooji (rawa) and maida (1% each) moved up.

The index for ‘Beverages, Tobacco & Tobacco Products’ group declined by 0.3 percent to 206.1 (provisional) from 206.7 (provisional) for the previous month due to lower price of  zarda (3%), beer (2%) and dried tobacco (1%).

The index for ‘Textiles’ group rose by 0.2 percent to 141.2 (provisional) from 140.9 (provisional) for the previous month due to higher price of jute sacking cloth (4%), tyre cord fabric (3%) and cotton yarn, gunny and hessian cloth, cotton fabric,  man made fabric and jute sacking bag (1% each).  However, the price of jute yarn (2%) and man made fibre and woollen textiles (1% each) declined.

The index for ‘Wood & Wood Products’ group rose by 0.8 percent to 197.9 (provisional) from 196.3 (provisional) for the previous month due to higher price of  plywood & fibre board (2%).

The index for ‘Paper & Paper Products’ group rose by 0.5 percent to 153.6 (provisional) from 152.9 (provisional) for the previous month due to higher price of laminated paper (7%), newspaper and paper pulp (2% each) and corrugated sheet boxes (1%).  However, the price of paper rolls (2%) declined.

The index for ‘Leather & Leather Products’ group declined by 0.7 percent to 144.3 (provisional) from 145.3 (provisional) for the previous month due to lower price of leathers (2%) and leather footwear (1%).  However, the price of leather garments & jackets (2%) moved up.

The index for ‘Non-Metallic Mineral Products’ group declined by 0.9 percent to 174.2 (provisional) from 175.8 (provisional) for the previous month due to lower price of  grey cement (3%).  However, the price of marbles (8%), slag  cement (7%) and glass bottles & bottleware (1%) moved up.

The index for ‘Basic Metals, Alloys& Metal Products’ group declined by 1.0 percent to 157.1 (provisional) from 158.7 (provisional) for the previous month due to lower price of sponge iron and rounds (3% each), gp/gc sheets, wire rods, HRC,     silver, plates, gold& gold ornaments and billets (2% each) and angles, rebars, pencil  ingots, joist & beams, pig iron, steel: pipes & tubes, brass, zinc, CRC and aluminium (1% each).  However, the price of ferro silicon (2%) and      nuts/bolts/screw/ washers (1%) moved up.

The index for ‘Machinery & Machine Tools’ group rose by 0.1 percent to 135.2 (provisional) from 135.0 (provisional) for the previous month due to higher price of ball/roller bearing (4%), industrial  valves (2%) and electric motors, rubber machinery,  engines and conductor (1% each).  However, the price of insulators (3%), plastic machinery and battery dry cells (2% each) and pvc insulated cable and electrical wires (1% each) declined.

The index for ‘Transport, Equipment& Parts’ group rose by  0.1 percent to 137.8 (provisional) from 137.7 (provisional) for the previous month due to higher price of shafts (all kinds) (2%).

FINAL INDEX FOR THE MONTH OF MAY, 2015 (BASE YEAR: 2004-05=100)

For the month of May, 2015, the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) stood at 178.0 as compared to 177.7 (provisional) and annual rate of inflation based on final index stood at -2.20 percent as compared to -2.36 percent (provisional) respectively as reported on 15.06.2015.

 Annexure-I

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

Month of July, 2015

Commodities/Major Groups/Groups/Sub-Groups	Weight	WPI July, 2015	Latest month over month			Build up from March		Year on year
			2014-15		2015-16	2014-15	2015-16	2014-15	2015-16
ALL COMMODITIES	100.00000	177.5	1.09		-0.62	2.61	0.80	5.41	-4.05
PRIMARY ARTICLES	20.11815	247.2	2.52		-0.48	7.18	3.43	6.78	-3.66
Food Articles	14.33709	255.7	3.44		-0.62	10.27	2.57	8.47	-1.16
Cereals	3.37323	231.9	1.60		0.43	1.95	0.35	5.18	-1.57
Rice	1.79348	237.7	1.49		0.34	5.43	1.76	8.13	-2.86
Wheat	1.11595	212.9	0.87		1.19	-4.26	-1.21	1.06	1.96
Pulses	0.71662	317.8	1.30		2.88	2.81	23.27	3.31	35.75
Vegetables	1.73553	252.1	22.39		-0.59	68.35	16.28	-1.15	-24.52
Potato	0.20150	174.5	10.12		17.35	78.61	15.41	47.83	-49.27
Onion	0.17794	406.5	35.99		14.15	67.69	22.26	-8.26	-0.49
Fruits	2.10717	234.8	7.43		-4.51	13.48	-3.69	31.87	-4.48
Milk	3.23818	250.3	0.04		0.16	3.30	1.21	10.46	5.30
Egg, Meat & Fish	2.41384	280.4	-6.62		-2.06	-3.25	-3.34	1.56	2.52
Non-Food Articles	4.25756	215.6	0.46		-1.33	-0.23	6.42	2.89	-0.74
Fibres	0.87737	208.1	-1.65		-1.09	-2.47	7.60	-3.20	-10.53
Oil Seeds	1.78051	212.1	0.90		-2.53	3.38	3.77	6.31	-0.89
Minerals	1.52350	255.9	0.09		2.98	0.52	5.18	2.72	-26.32
FUEL & POWER	14.91021	187.1	1.08		-2.04	0.19	-0.48	7.35	-12.81
Liquefied petroleum gas	0.91468	162.7	0.12		-0.18	-3.06	0.00	8.90	-5.02
Petrol	1.09015	174.3	2.71		-1.41	0.25	5.57	5.90	-13.33
High speed diesel	4.67020	198.8	1.53		-4.10	3.29	-2.17	12.64	-16.75
MANUFACTURED PRODUCTS	64.97164	153.7	0.39		-0.32	1.17	-0.13	4.07	-1.47
Food Products	9.97396	172.0	1.04		-0.64	3.55	1.12	4.41	-1.77
Sugar	1.73731	160.5	2.37		-4.12	6.05	-8.02	1.99	-17.48
Edible Oils	3.04293	148.8	0.83		-0.27	-0.14	2.76	0.97	1.71
Beverages, Tobacco & Tobacco Product	1.76247	206.1	0.91		-0.29	2.15	1.43	9.96	3.10
Cotton Textiles	2.60526	158.6	-0.54		0.83	0.85	0.57	6.74	-4.63
Man Made Textiles	2.20573	133.5	1.26		-0.67	1.48	0.68	5.71	-2.55
Wood & Wood Products	0.58744	197.9	-0.64		0.82	-0.91	4.32	5.27	6.57
Paper & Paper Products	2.03350	153.6	0.20		0.46	1.49	0.46	6.54	2.54
Leather & Leather Products	0.83509	144.3	1.44		-0.69	1.30	1.41	3.64	-2.43
Rubber & Plastic Products	2.98697	149.4	0.33		0.00	0.47	0.74	4.58	-0.80
Chemicals & Chemical Products	12.01770	151.4	0.46		0.00	0.92	0.33	4.48	-1.69
Non-Metallic Mineral Products	2.55597	174.2	0.30		-0.91	1.19	-2.52	1.44	2.77
Cement & Lime	1.38646	168.3	0.48		-2.15	1.34	-5.29	-3.09	1.20
Basic Metals Alloys & Metal Product	10.74785	157.1	0.12		-1.01	-0.30	-2.96	3.02	-5.98
Iron & Semis	1.56301	143.8	-0.37		-1.37	1.13	-3.43	6.00	-10.52
Machinery & Machine Tools	8.93148	135.2	0.15		0.15	1.13	0.15	2.98	0.37
Transport Equipment & Parts	5.21282	137.8	0.00		0.07	0.22	0.36	2.10	1.25

 Annexure-II

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

Commodities/Major Groups/Groups/Sub-Groups	Weight (%)		Rate of Inflation for the last six months
			July-15	June-15	May-15	Apr-15	Mar-15	Feb-15
ALL COMMODITIES	100.00		-4.05	-2.40	-2.20	-2.43	-2.33	-2.17
PRIMARY ARTICLES	20.12		-3.66	-0.76	-1.05	0.50	-0.17	1.01
Food Articles	14.34		-1.16	2.88	2.74	5.90	6.27	7.83
Cereals	3.37		-1.57	-0.43	0.04	0.35	0.00	1.13
Rice	1.79		-2.86	-1.74	-1.43	-0.04	0.65	3.28
Wheat	1.12		1.96	1.64	2.60	1.65	-1.19	-2.40
Pulses	0.72		35.75	33.67	23.10	15.47	13.22	14.50
Vegetables	1.74		-24.52	-7.07	-4.99	-1.32	9.27	15.28
Potato	0.20		-49.27	-52.40	-50.71	-41.05	-21.50	-5.20
Onion	0.18		-0.49	18.54	22.15	29.97	36.49	25.96
Fruits	2.11		-4.48	7.47	6.69	15.09	12.56	16.84
Milk	3.24		5.30	5.18	6.89	7.42	7.48	7.99
Egg, Meat & Fish	2.41		2.52	-2.25	-4.04	4.01	2.62	1.59
Non-Food Articles	4.26		-0.74	1.06	-0.96	-2.90	-6.94	-5.64
Fibres	0.88		-10.53	-11.04	-12.08	-13.77	-18.91	-22.69
Oil Seeds	1.78		-0.89	2.59	-0.64	-1.52	-1.26	-0.20
Minerals	1.52		-26.32	-28.39	-26.50	-28.62	-29.58	-29.55
FUEL & POWER	14.91		-12.81	-10.03	-9.43	-12.98	-12.23	-14.77
Liquefied petroleum gas	0.91		-5.02	-4.73	-4.95	-6.06	-7.92	-8.86
Petrol	1.09		-13.33	-9.70	-9.20	-17.32	-17.70	-21.80
High speed diesel	4.67		-16.75	-11.86	-9.77	-14.99	-12.11	-17.59
MANUFACTURED PRODUCTS	64.97		-1.47	-0.77	-0.52	-0.45	-0.19	0.26
Food Products	9.97		-1.77	-0.12	-0.29	-1.05	0.59	1.25
Sugar	1.74		-17.48	-11.89	-11.17	-8.76	-4.85	-2.20
Edible Oils	3.04		1.71	2.83	0.82	-1.23	-1.16	-0.82
Beverages, Tobacco & Tobacco Product	1.76		3.10	4.34	4.20	2.94	3.83	4.06
Cotton Textiles	2.61		-4.63	-5.92	-5.38	-4.77	-4.37	-2.47
Man Made Textiles	2.21		-2.55	-0.67	-0.81	-1.71	-1.78	-1.71
Wood & Wood Products	0.59		6.57	5.03	5.14	1.69	1.23	2.99
Paper & Paper Products	2.03		2.54	2.27	2.61	2.74	3.59	3.56
Leather & Leather Products	0.84		-2.43	-0.34	-0.14	-1.45	-2.53	-2.34
Rubber & Plastic Products	2.99		-0.80	-0.47	-0.47	-1.07	-1.07	-0.74
Chemicals & Chemical Products	12.02		-1.69	-1.24	-1.18	-1.37	-1.11	-0.79
Non-Metallic Mineral Products	2.56		2.77	4.02	4.88	6.96	6.69	5.26
Cement & Lime	1.39		1.20	3.93	5.19	7.68	8.29	5.20
Basic Metals Alloys & Metal Product	10.75		-5.98	-4.91	-4.01	-3.06	-3.40	-2.21
Iron & Semis	1.56		-10.52	-9.61	-7.91	-5.66	-6.29	-5.02
Machinery & Machine Tools	8.93		0.37	0.37	0.90	1.05	1.35	1.81
Transport Equipment & Parts	5.21		1.25	1.18	1.40	1.33	1.10	0.96

Wholesale Price Index signals falling inflation as monthly declines in primary articles and fuel reduce the overall WPI. Wholesale Price Index (base 2004 05=100) for July 2015 fell to a provisional 177.5, producing a year on year WPI inflation rate of -4.05%. The decline reflects monthly drops in Primary Articles (notably food and non food agricultural items) and Fuel & Power, while Minerals rose. Manufactured Products showed a modest fall with varied subgroup movements. Annexures provide weighted indices, month on month, build up and year on year rates and a six month trend for key items.