The official Wholesale Price Index for ‘All Commodities’ (Base: 2011-12=100) for the month of December, 2017 declined by 0.5 percent to 115.7 (provisional) from 116.3 (provisional) for the previous month.

INFLATION

The annual rate of inflation, based on monthly WPI, stood at 3.58% (provisional) for the month of December, 2017 (over December, 2016) as compared to 3.93% (provisional) for the previous month and 2.10% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 2.21% compared to a build up rate of 3.71% 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 22.62%)

The index for this major group declined by 2.9 percent to 131.7 (provisional) from 135.6 (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 4.3 percent to 144.1 (provisional) from 150.6 (provisional) for the previous month due to lower price of fruits & vegetables (14%), peas/chawali (6%), gram and egg (5% each), rajma and poultry chicken (4% each), coffee and fish-inland (3% each), urad and tea (2% each) and maize and masur (1% each). However, the price of betel leaves (16%), bajra (3%), jowar, barley and condiments & spices (2% each) and arhar, moong and pork (1% each) moved up.

The index for ‘Non-Food Articles’ group rose by 1.8 percent to 119.0 (provisional) from 116.9 (provisional) for the previous month due to higher price of floriculture (19%), copra (coconut) (8%), raw silk, gingelly seed and guar seed (7% each), raw cotton (6%), raw wool and raw rubber (4% each), hides (raw) and soyabean (3% each), cotton seed, rape & mustard seed and castor seed (2% each) and raw jute, skins (raw), sunflower and coir fibre (1% each).  However, the price of mesta and fodder (8% each), groundnut seed (3%), safflower (kardi seed) (2%) and niger seed and linseed (1% each) declined.

The index for ‘Minerals’ group declined by 5.4 percent to 122.3 (provisional) from 129.3 (provisional) for the previous month due to lower price of copper concentrate (14%), lead concentrate and zinc concentrate (7% each).   However, the price of chromite (9%), manganese ore (6%), bauxite (3%) and phosphorite (1%) moved up.

The index for ‘Crude Petroleum & Natural Gas’ group rose by 4.8 percent to 78.1 (provisional) from 74.5 (provisional) for the previous month due to higher price of crude petroleum (7%).  However, the price of natural gas (1%) declined.

FUEL & POWER (Weight 13.15%)

The index for this major group rose by 1.6 percent to 96.5 (provisional) from 95.0 (provisional) for the previous month The groups and items which showed variations during the month are as follows:-

The index for ‘Coal’ group rose by 0.6 percent to 118.3 (provisional) from 117.6 (provisional) for the previous month due to higher price of lignite (18%).

The index for ‘Mineral Oils’ group rose by 2.8 percent to 87.0 (provisional) from 84.6 (provisional) for the previous month due to higher price of bitumen (12%), ATF (7%), naphtha (6%), furnace oil (5%), kerosene (3%), HSD and petrol (2% each) and LPG (1%).

MANUFACTURED PRODUCTS (Weight 64.23%)

The index for this major group rose by 0.1 percent to 114.0 (provisional) from 113.9 (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 declined by 0.4 percent to 127.4 (provisional) from 127.9 (provisional) for the previous month due to lower price of molasses (20%), gur and gram powder (besan) (6% each), sugar, honey and powder milk (4% each), coffee powder with chicory and bagasse (3% each), processed tea, maida and sooji (rawa) (2% each) and chicken/duck, dressed-fresh/frozen, basmati rice and instant coffee (1% each).  However, the price of processing & preserving of fish, crustaceans & molluscs & products thereof, copra oil and other meats, preserved/processed (4% each), manufacture of macaroni, noodles, couscous & similar farinaceous products (3%), cotton seed oil, wheat bran, spices (including mixed spices) and buffalo meat, fresh/frozen (2% each) and mustard oil, sunflower oil, rice bran oil, groundnut oil, castor oil, ortland, palm oil, rice (non-basmati), manufacture of cocoa, chocolate & sugar confectionery and processing & preserving of fruit & vegetables (1% each) moved up.

The index for ‘Manufacture of Beverages’ group rose by 0.2 percent to 119.7 (provisional) from 119.5 (provisional) for the previous month due to higher price of bottled mineral water (3%) and aerated drinks/soft drinks (incl.soft drink concentrates) (2%).   However, the price of wine, beer and spirits (1% each) declined.

The index for ‘Manufacture of Tobacco Products’ group declined by 2.1 percent to 152.1 (provisional) from 155.3 (provisional) for the previous month due to lower price of cigarette (10%).   However, the price of other tobacco products (3%) and biri (1%) moved up.

The index for ‘Manufacture of Textiles’ group declined by 0.4 percent to 113.0 (provisional) from 113.5 (provisional) for the previous month due to lower price of manufacture of cordage, rope, twine & netting and weaving & finishing of textiles (2% each).  However, the price of viscose yarn (2%) and manufacture of other textiles, woollen yarn, texturised & twisted yarn, manufacture of knitted & crocheted fabrics, cotton yarn and synthetic yarn (1% each) moved up.

The index for ‘Manufacture of Wearing Apparel’ group rose by 1.0 percent to 138.9 (provisional) from 137.5 (provisional) for the previous month due to higher price of manufacture of knitted & crocheted apparel (3%).

The index for ‘Manufacture of Leather and Related Products’ group rose by 0.7 percent to 120.3 (provisional) from 119.5 (provisional) for the previous month due to higher price of belt & other articles of leather (6%) and leather shoe and travel goods, handbags, office bags, etc. (1% each).  However, the price of harness, saddles & other related items (2%) and vegetable tanned leather and chrome tanned leather (1% each) declined.

The index for ‘Manufacture of Wood and of Products of Wood and Cork’ group declined by 1.0 percent to 130.3 (provisional) from 131.6 (provisional) for the previous month due to lower price of wooden board (non-electrical) (10%), wooden box/crate (6%), wooden block-compressed or not and timber/wooden plank, sawn/resawn (3% each) and wooden splint (1%).  However, the price of wood cutting, processed/sized and plywood block boards (1% each) moved up.

The index for ‘Manufacture of Paper and Paper Products’ group rose by 0.3 percent to 118.4 (provisional) from 118.1 (provisional) for the previous month due to higher price of tissue paper (3%) and paper carton/box, newsprint, base paper, bristle paper board, paper for printing & writing and kraft paper (1% each). However, the price of corrugated sheet box and duplex paper (1% each) declined.

The index for ‘Printing and Reproduction of Recorded Media’ group rose by 0.8 percent to 143.7 (provisional) from 142.5 (provisional) for the previous month due to higher price of newspaper (3%), journal/periodical (2%) and printed labels/posters/calendars, sticker plastic and printed form & schedule (1% each).  However, the price of hologram (3d) (3%) declined.

The index for ‘Manufacture of Chemicals and Chemical Products’ group rose by 0.5 percent to 112.8 (provisional) from 112.2 (provisional) for the previous month due to higher price of menthol (23%), camphor (11%), acetic acid & its derivatives (7%), sulphuric acid (6%), oleoresin (5%), sodium silicate, hydrogen peroxide and organic solvent (4% each), shampoo, ammonium sulphate, acrylic fibre, ammonia liquid, nitric acid, ethyl acetate, caustic soda (sodium hydroxide) and alkyl benzene (3% each), rubber chemicals, fatty acid, organic chemicals, dye stuff/dyes incl. dye intermediates & pigments/colours, alcohols, di ammonium phosphate and mosquito coil (2% each) and creams & lotions for external application, other inorganic chemicals, ethylene oxide, adhesive excluding gum, varnish (all types), printing ink, superphospate / phosphatic fertilizer, others, paint, fungicide, liquid, aromatic chemicals, ammonium nitrate, other petrochemical intermediates, tooth paste/tooth powder, detergent cake, washing soap cake/bar/powder, insecticide & pesticide, soda ash/washing soda and amine (1% each).  However, the price of catalysts (4%), adhesive tape (non-medicinal) (3%), polyester film (metalized), organic surface active agent, phosphoric acid and perfume/scent (2% each) and liquid air & other gaseous products, phthalic anhydride, additive, foundry chemical, carbon black, mixed fertilizer, aniline (including pna, ona, ocpna) and mono ethyl glycol (1% each) declined.

The index for ‘Manufacture of Pharmaceuticals, Medicinal Chemical and Botanical Products’ group rose by 1.2 percent to 123.1 (provisional) from 121.6 (provisional) for the previous month due to higher price of anti cancer drugs (5%), plastic capsules (3%), api & formulations of vitamins and antipyretic, analgesic, anti-inflammatory formulations (2% each) and  ayurvedic medicaments, antibiotics & preparations thereof  and cotton wool (medicinal) (1% each). However, the price of anti inflammatory preparation (17%), vaccine for hepatitis-B (14%), antiseptics and disinfectants (6%), antioxidants (2%) and vials/ampoule, glass, empty or filled and anti-malarial drugs (1% each) declined.

The index for ‘Manufacture of Rubber and Plastics Products’ group declined by 0.1 percent to 107.5 (provisional) from 107.6 (provisional) for the previous month due to lower price of rubberized dipped fabric (6%), rubber tubes-not for tyres (4%), polyester film (non-metalized) and rubber crumb (2% each) and rubber cloth/sheet, rubber moulded goods, PVC fittings & other accessories, plastic film, plastic tube (flexible/non-flexible), tooth brush, plastic button, medium & heavy commercial vehicle tyre, conveyer belt (fibre based) and rubber tread (1% each).  However, the price of rubber components & parts (4%), plastic bag (2%) and solid rubber tyres/wheels, plastic box/container, polypropylene film, tractor tyre and motor car tyre (1% each) moved up.

The index for ‘Manufacture of other Non-Metallic Mineral Products’ group rose by 0.2 percent to 111.6 (provisional) from 111.4 (provisional) for the previous month due to higher price of cement blocks (concrete) (7%), porcelain sanitary ware (3%), porcelain crockery and railway sleeper (2% each) and ordinary sheet glass, lime & calcium carbonate, ordinary ortland cement, poles & posts of concrete, marble slab and pozzolana cement (1% each).  However, the price of stone, chip, asbestos corrugated sheet and cement superfine (2% each) and toughened glass, non ceramic tiles, clinker and  graphite rod (1% each) declined.

The index for ‘Manufacture of Basic Metals’ group rose by 1.0 percent to 102.0 (provisional) from 101.0 (provisional) for the previous month due to higher price of stainless steel pencil ingots/billets/slabs (8%), ferrosilicon (5%), mild steel (ms) blooms (4%), ms pencil ingots and angles, channels, sections, steel (coated/not) (3% each), alloy steel wire rods, stainless steel bars & rods, including flats, sponge iron/direct reduced iron (DRI), stainless steel tubes and ms castings (2% each) and hot rolled (HR) coils & sheets, including narrow strip, pig iron, steel cables, MS wire rods, stainless steel coils, strips & sheets and cast iron, castings (1% each).  However, the price of ms bright bars, other ferro alloys and ferrochrome (3% each), cold rolled (CR) coils & sheets, including narrow strip, silicomanganese, aluminium ingot, copper shapes- bars/rods/plates/strips, aluminium alloys, ferromanganese, steel forgings-rough and aluminium powder (1% each) declined.

The index for ‘Manufacture of Fabricated Metal Products, Except Machinery and Equipment’ group declined by 0.2 percent to 110.9 (provisional) from 111.1 (provisional) for the previous month due to lower price of cylinders (2%) and copper bolts, screws, nuts, electrical stamping- laminated or otherwise, iron/steel cap, steel door, hand tools, stainless steel razor and jigs & fixture (1% each). However, the price of steel structures, forged steel rings, lock/padlock, steel container, steel pipes, tubes & poles, metal cutting tools & accessories and steel drums & barrels (1% each) moved up.

The index for ‘Manufacture of Computer, Electronic and Optical Products’ group rose by 0.4 percent to 110.7 (provisional) from 110.3 (provisional) for the previous month due to higher price of colour TV (2%) and meter (non-electrical) and ups in solid state drives (1% each).  However, the price of capacitors (2%) and sunglasses and electronic printed circuit board (pcb)/micro circuit (1% each) declined.

The index for ‘Manufacture of Machinery and Equipment’ group declined by 0.2 percent to 109.2 (provisional) from 109.4 (provisional) for the previous month due to lower price of pressure vessel & tank for fermentation & other food processing (6%), cranes (4%), excavator (3%), solar power system (solar panel & attachable equipment), pharmaceutical machinery, air filters, concrete vibrator & mixture and air gas compressor including compressor for refrigerator (2% each) and clutches & shaft couplings and mining, quarrying & metallurgical machinery/parts (1% each).  However, the price of conveyors- non-roller type (5%), drilling machine (3%), gasket kit (2%) and agriculture implements, air or vacuum pump, filtration equipment, sugar machinery, chemical equipment & system, industrial valve, oil pump, centrifugal pumps and rice mill machinery (1% each) moved up.

The index for ‘Manufacture of Motor Vehicles, Trailers and Semi-Trailers’ group declined by 0.1 percent to 110.3 (provisional) from 110.4 (provisional) for the previous month due to lower price of minibus/bus, brake pad/brake liner/brake block/brake rubber, others, filter element and radiators & coolers (1% each).  However, the price of crankshaft (4%) and release valve, light, medium & heavy commercial vehicles, shafts of all kinds, body (for commercial motor vehicles) and cylinder liners (1% each) moved up.

The index for ‘Manufacture of Other Transport Equipment’ group declined by 0.2 percent to 110.6 (provisional) from 110.8 (provisional) for the previous month due to lower price of propellers & blades of boats/ships (1%). However, the price of tanker (1%) moved up.

The index for ‘Manufacture of Furniture’ group declined by 2.0 percent to 120.1 (provisional) from 122.5 (provisional) for the previous month due to lower price of foam and rubber mattress (8%), wooden furniture (2%) and plastic fixtures (1%).   However, the price of iron/steel furniture (1%) moved up.

The index for ‘Other Manufacturing’ group rose by 2.8 percent to 111.7 (provisional) from 108.7 (provisional) for the previous month due to higher price of playing cards (4%), gold & gold ornaments (3%) and cricket ball (2%).  However, the price of silver and cricket bat (2% each) and sports goods of rubber (incl. balls) (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 Product’ from Manufactured Products group decreased from 4.10% in November, 2017 to 2.91% in December, 2017.

FINAL INDEX FOR THE MONTH OF OCTOBER, 2017 (BASE YEAR: 2011-12=100)

For the month of October, 2017, the final Wholesale Price Index for ‘All Commodities’ (Base: 2011-12=100) stood at 115.6 as compared to 115.5 (provisional) and annual rate of inflation based on final index stood at 3.68 percent as compared to 3.59 percent (provisional) respectively as reported on 14.11.2017.

Next date of press release: 15/02/2018 for the month of January, 2018

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: 2011-12=100)

Month of December, 2017

Annexure-II

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