WPI inflation down at four-month low of 1% in March on lower food prices

New Delhi: The annual rate of inflation based on monthly wholesale price index (WPI) stood at 1 per cent in March over the same month last year, according to government data released on Wednesday (April 15). The official WPI for all commodities (base 2011-12=100) for March 2020 declined by 0.9 per cent to 121.1 from 122.2 for the previous month, said a statement issued by the Ministry of Commerce and Industry.

"The annual rate of inflation based on monthly WPI stood at 1 per cent for March 2020 (over March 2019) as compared to 2.26 per cent for the previous month and 3.1 per cent during the corresponding month of the previous year," it said, adding "build-up inflation rate in the financial year so far was 1 per cent compared to a build-up rate of 3.1 per cent in the corresponding period of the previous year."

"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 7.31 per cent in February 2020 to 5.49 per cent in March 2020," said the statement.

The movement of index for various commodity group is summarized below:

1. The index for 'Food Articles' group declined by 2.1% to 151.6 (provisional) from 154.9 (provisional) for the previous month due to lower price of egg (17%), poultry chicken (9%), tea (7%), fish-marine, maize and fruits & vegetables (5% each), jowar (4%), bajra and wheat (3% each), gram, paddy, betel leaves and urad (2% each) and fish-inland, arhar, pork, masur and mutton (1% each). However, the price of beef and buffalo meat (8%), moong and peas/chawali (4% each) and ragi and milk (1% each) moved up.

2. The index for 'Non-Food Articles' group declined by 4.2% to 126.1 (provisional) from 131.6 (provisional) for the previous month due to lower price of floriculture (30%), safflower (kardi seed) (12%), soyabean and gaur seed (8% each), sunflower (7%), raw rubber (4%), linseed, coir fibre, rape & mustard seed and hides (raw) (2% each) and niger seed, copra (coconut), raw jute and castor seed (1% each). However, the price of cotton seed (6%), groundnut seed (5%), skins (raw) (3%) and industrial wood, raw silk, fodder and gingelly seed (sesamum) (1% each) moved up.

3. The index for 'Minerals' group rose by 4.2% to 153.8 (provisional) from 147.6 (provisional) for the previous month due to higher price of manganese ore (15%), copper concentrate (7%) andphosphorite (6%). However, the price of chromite (3%), limestone (2%) and bauxite, zinc concentrate and lead concentrate (1% each) declined.

4. The index for 'Crude Petroleum & Natural Gas' group declined by 6.6% to 81.3 (provisional) from 87.0 (provisional) for the previous month due to lower price of crude petroleum (9%).

5. The index for 'Mineral Oils' group declined by 5.6% to 87.2 (provisional) from 92.4 (provisional) for the previous month due to lower price of ATF (19%), naphtha (13%), HSD and kerosene (5% each), petrol and furnace oil (4% each) and LPG (3%). However, the price of petroleum coke (7%) moved up.

6. The index for ‘Manufacture of Food Products’ remained unchanged to its previous level of 136.9. The items which decreased where rice bran extract (9%), rice bran oil (3%), cottonseed oil cake (2%) and gur, rapeseed oil, gram powder (Besan), honey, chicken/duck, dressed- fesh/frozen, palm oil, maida, gola& similar cattle feed, sunflower oil, vegetable starch, rice products and cottonseed oil (1% each). However, the price of molasses (6%), coffee powder with chicory (4%), spices (including mixed spices) (3%), groundnut oil, fish frozen/canned/processed and mustard oil cake (2% each) and processed tea, vanaspati, mustard oil, bagasse, sooji (rawa), sugar confectionery, rice non-basmati, cornflake and ice cream (1% each) moved up.

7. The index for 'Manufacture of Tobacco Products' group rose by 0.4% to 154.8 (provisional) from 154.2 (provisional) for the previous month due to higher price of other tobacco products (1%). However, the price of cigarette (1%) declined.

8. The index for 'Manufacture of Textiles' group declined by 0.1% to 116.6 (provisional) from 116.7 (provisional) for the previous month due to lower price of manufacture of knitted and crocheted fabrics (1%). However, the price of viscose yarn (2%) moved up.

9. The index for 'Manufacture of Wearing Apparel' group rose by 0.1% to 138.0 (provisional) from 137.8 (provisional) for the previous month due to higher price of manufacture of wearing apparel (woven), except fur apparel (1%). However, the price of manufacture of knitted and crocheted apparel (1%) declined.

10. The index for 'Manufacture of Leather and Related Products' group rose by 0.1% to 117.9 (provisional) from 117.8 (provisional) for the previous month due to higher price of harness, saddles & other related items (2%) and chrome tanned leather and waterproof footwear (1% each). However, the price of travel goods, handbags, office bags, etc. and plastic/PVCchappals (1% each) declined.

11. The index for 'Manufacture of Wood and of Products of Wood and Cork ' group rose by 0.2% to 133.0 (provisional) from 132.7 (provisional) for the previous month due to higher price of wooden box/crate (2%). However, the price of woodcutting, processed/sized (1%) declined.

12. The index for 'Manufacture of Paper and Paper Products' group rose by 0.3% to 120.3 (provisional) from 120.0 (provisional) for the previous month due to higher price of pulpboard (4%), corrugated sheet box (3%), tissue paper (2%) and cardboard and corrugated paper board (1%). However, the price of a laminated plastic sheet (4%) and paper carton/box (2%) declined.

13. The index for 'Printing and Reproduction of Recorded Media ' group rose by 1.2% to 153.3 (provisional) from 151.5 (provisional) for the previous month due to higher price of printed books (2%) and hologram (3d) and journal/periodical (1% each).

14. The index for 'Manufacture of Chemicals and Chemical Products' group declined by 0.2% to 115.8 (provisional) from 116.0 (provisional) for the previous month due to lower price of monoethyl glycol (10%), ammonia gas (9%), sulphuric acid (8%), polystyrene, expandable (4%), organic solvent and catalysts (3% each), superphosphate/phosphatic fertilizer, others, alkylbenzene, other inorganic chemicals, polypropylene (PP) and camphor (2% each) and carbon black, ammonium phosphate, aniline (including PNA, ONA, OCPNA), organic chemicals, shampoo, ethyl acetate, additive and adhesive excluding gum (1% each). 

However, the price of nitric acid (9%), hydrogen peroxide (6%), oleoresin, agarbatti, menthol and safety matches (match box) (2% each) and phthalic anhydride, toilet soap, viscose staple fibre, ammonium nitrate, caustic soda (sodium hydroxide), gelatine, polyester fibre fabric, varnish (all types), fatty acid , poly vinyl chloride (PVC), liquid air & other gaseous products, foundry chemical, explosive, di ammonium phosphate and mixed fertilizer (1% each) moved up.

15. The index for 'Manufacture of Pharmaceuticals, Medicinal Chemical and Botanical Products' group rose by 0.2% to 130.6 (provisional) from 130.3 (provisional) for the previous month due to higher price of vials/ampoule, glass, empty or filled (5%), simvastatin (2%) and API & formulations of vitamins, antioxidants, anti-malarial drugs and antibiotics & preparations thereof (1% each). However, the price of antidiabetic drug excluding insulin (i.e. tolbutam) (6%) and anti-retroviral drugs for HIV treatment (2%) declined.

16. The index for 'Manufacture of Other Non-Metallic Mineral Products' group rose by 0.2% to 116.5 (provisional) from 116.3 (provisional) for the previous month due to higher price of stone, chip (6%), porcelain sanitary ware (3%), slag cement and cement superfine (2% each) and granite, toughened glass and fibre glass incl. sheet (1% each). However, the price of electric insulating material (2%) and non ceramic tiles, white cement, marble slab, ceramic tiles (vitrified tiles), ordinary sheet glass, railway sleeper, lime and calcium carbonate and clinker (1% each) declined.

17. The index for 'Manufacture of Basic Metals' group declined by 0.4% to 106.6 (provisional) from 107.0 (provisional) for the previous month due to lower price of stainless steel pencil ingots/billets/slabs (5%), MS pencil ingots and pig iron (2% each) and hot-rolled (HR) coils & sheets, including narrow strip and steel forgings - rough (1% each). However, the price of rails (6%), ferrosilicon (4%), stainless steel coils, strips & sheets (3%), aluminum disk and circles (2%) and cast iron, castings, angles, channels, sections, steel (coated/not), brass metal/sheet/coils, stainless steel bars & rods, including flats and ferrochrome (1% each) moved up.

18. The index for 'Manufacture of Fabricated Metal Products, Except Machinery and Equipment' group rose by 0.1% to 114.7 (provisional) from 114.6 (provisional) for the previous month due to higher price of forged steel rings and cylinders (2% each) and steel drums and barrels and steel container (1% each). However, the price of sanitary fittings of iron & steel (8%), jigs & fixture (5%), bracket (2%) and hand tools and hose pipes inset or otherwise (1% each) declined.

19. The index for 'Manufacture of Computer, Electronic, and Optical Products' group declined by 0.2% to 109.3 (provisional) from 109.5 (provisional) for the previous month due to lower price of electronic printed circuit board  (PCB)/micro circuit (4%) and x-ray equipment (2%). However, the price of the electro-diagnostic apparatus, used in medical, surgical, dental or veterinary sciences (4%) moved up.

20. The index for 'Manufacture of Electrical Equipment' group rose by 0.9% to 111.7 (provisional) from 110.7 (provisional) for the previous month due to higher price of the transformer (6%), cooling tower (2%) and jelly-filled cables and electric welding machine (1% each). However, the price of fibre optic cables (3%), safety fuse (2%) and electric mixers/grinders/food processors, electric filament type lamps, fluorescent tubes, rubber insulated cables and AC motor (1% each) declined.

21. The index for 'Manufacture of Machinery and Equipment' group declined by 0.4% to 112.9 (provisional) from 113.4 (provisional) for the previous month due to lower price of air or vacuum pump (4%), air gas compressor including compressor for refrigerator and roller and ball bearings (3% each), manufacture of bearings, gears, gearing and driving elements, pharmaceutical machinery, mining, quarrying & metallurgical machinery/parts and dumper (2% each) and hydraulic equipment (1%). However, the price of gasket kit (7%) and excavator (1%) moved up.

22. The index for 'Manufacture of Motor Vehicles, Trailers and Semi-Trailers' group rose by 0.5% to 115.4 (provisional) from 114.8 (provisional) for the previous month due to higher price of minibus/bus (4%) and headlamp and cylinder liners (1% each). However, the price of brake pad/brake liner/brake block/brake rubber, others (3%), chassis of different vehicle types (2%) and piston ring/piston and compressor (1%) declined.

23. The index for 'Manufacture of Furniture' group rose by 2.1% to 130.9 (provisional) from 128.2 (provisional) for the previous month due to higher price of foam and rubber mattress (14%). However, the price of hospital furniture (7%) and wooden furniture (1%) declined.

24. The index for 'Other Manufacturing' group rose by 0.5% to 117.6 (provisional) from 117.0 (provisional) for the previous month due to higher price of gold & gold ornaments (1%) and cricket bat (1%). However, the price of silver (6%), cricket ball (2%) and sports goods of rubber (incl. balls) (1%) declined.
 
25. 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 7.31% in February, 2020 to 5.49% in March, 2020.