The official Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) for the month of December, 2016 declined by 0.2 percent to 182.8 (provisional) from 183.1 (provisional) for the previous month.

INFLATION

The annual rate of inflation, based on monthly WPI, stood at 3.39% (provisional) for the month of December, 2016 (over December, 2015) as compared to 3.15% (provisional) for the previous month and -1.06% during the corresponding month of the previous year.  Build up inflation rate in the financial year so far was 4.28% compared to a build up rate of 0.40% 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 1.2 percent to 256.3 (provisional) from 259.4 (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 2.2 percent to 270.1 (provisional) from 276.1 (provisional) for the previous month due to lower price of fruits & vegetables (9%), arhar (6%), masur and urad (5% each), moong (4%),      gram (2%) and poultry chicken (1%).  However, the price of ragi (4%), jowar and wheat (3% each), bajra (2%) and      egg, barley, pork, condiments & spices, tea and fish-inland (1% each) moved up.

The index for ‘Non-Food Articles’ group rose by 1.9 percent to 225.6 (provisional) from 221.4 (provisional) for the previous month due to higher price of flowers (10%), raw rubber (9%), copra (coconut) and groundnut seed (6% each), raw silk (5%), gingelly seed and raw cotton (2% each) and soyabean, sugarcane and safflower (kardi seed) (1% each).  However, the price of raw jute (4%), sunflower (3%), rape & mustard seed (2%) and coir fibre, niger seed, linseed and raw wool (1% each) declined.

The index for ‘Minerals’ group rose by 2.8 percent to 213.3 (provisional) from 207.4 (provisional) for the previous month due to higher price of magnesite and sillimanite (15% each), manganese ore (11%), iron ore (7%), phosphorite and crude petroleum (4% each) and chromite (1%).  However, the price of copper ore (8%) declined.

FUEL & POWER (Weight 14.91%)

The index for this major group rose by 0.7 percent to 192.1 (provisional) from 190.7  (provisional) for the previous month due to higher price of furnace oil (5%),  kerosene, petrol and LPG (2% each) and high speed diesel (1%).  However, the price of aviation turbine fuel (4%) and bitumen (2%) declined.

MANUFACTURED PRODUCTS (Weight 64.97%)

The index for this major group rose by 0.1 percent to 158.0 (provisional) from 157.9 (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 0.2 percent to 193.7 (provisional) from 194.0 (provisional) for the previous month due to lower price of tea leaf (blended), coffee powder and gur (5% each), oil cakes (3%), processed prawn (2%) and maida, tea leaf (unblended), sugar, gingelly oil, tea dust (blended), mustard & rapeseed oil, sunflower oil and tea dust (unblended) (1% each).  However, the price of gram powder (besan) (14%), groundnut oil, copra oil, gola (cattle feed) and wheat flour (atta) (2% each) and ghee, rice bran oil, bakery products, soyabean oil, palm oil and sooji      (rawa) (1% each) moved up.

The index for ‘Beverages, Tobacco & Tobacco Products’ group rose by 0.1 percent to 221.9 (provisional) from 221.6 (provisional) for the previous month due to higher price of dried tobacco (4%).  However, the price of rectified spirit      (1%) declined.

The index for ‘Textiles’ group declined by 0.1 percent to 141.6 (provisional) from 141.8 (provisional) for the previous month due to lower price of jute sacking bag (5%), jute sacking cloth (2%) and tyre cord fabric (1%).  However, the price of gunny and hessian cloth (3%) and man made fabric (1%) moved up.

The index for ‘Wood & Wood Products’ group declined by 2.0 percent to 193.7 (provisional) from 197.6 (provisional) for the previous month due to lower price of timber / wooden planks and plywood & fibre board (2% each) and processed wood (1%).

The index for ‘Paper & Paper Products’ group rose by 0.4 percent to 157.0 (provisional) from 156.4 (provisional) for the previous month due to higher price of printing and writing paper (3%) and paper rolls, cream laid woven paper and maplitho paper (1%each).  However, the price of corrugated sheet boxes and newsprint (1% each) declined.

The index for ‘Leather & Leather Products’ group declined by  0.7 percent to 146.1 (provisional) from 147.1 (provisional) for the previous month due to lower price of leathers (3%).

The index for ‘Chemicals & Chemical Products’ group declined by 0.1 percent to 150.7 (provisional) from 150.8 (provisional) for the previous month due to lower price of di ammonium phosphate and turpentine oil (3%each) and       ammonium sulphate,  non-cyclic compound and rubber chemicals (1% each).  However, the price of synthetic resin,     lacquer & varnishes and basic organic chemicals (1% each) moved up.

The index for ‘Non-Metallic Mineral Products’ group declined by 0.3 percent to 179.3 (provisional) from 179.9 (provisional) for the previous month due to lower price of asbestos corrugated sheet (2%) and grey cement (1%).  However, the price of marbles (6%) and white cement (1%) moved up.

The index for 'Basic Metals, Alloys & Metal Products' group rose by 0.8 percent to 157.6 (provisional) from 156.3 (provisional) for the previous month due to higher price of ferro chrome (13%), plates and gp/gc sheets (5% each), lead    (4%), CRC and HRC (3% each), wire rods, steel castings, sheets, joist & beams and rounds (2% each) and angles,     rebars, steel rods, steel: pipes & tubes, pencil  ingots, melting scrap, aluminium and ferro silicon (1% each).  However, the price of gold & gold ornaments (4%), silver and pipes/tubes/rods/strips (2% each) and pig iron, billets and iron castings (1% each) declined.

The index for ‘Machinery & Machine Tools’ group rose by 0.1 percent to 135.5 (provisional) from 135.4 (provisional) for the previous month due to higher price of pvc insulated cable and fibre optic cable (1% each).  However, the price of ball/roller bearing (2%) and engines (1%) declined.

The index for ‘Transport, Equipment & Parts’ group rose by 0.1 percent to 140.0 (provisional) from 139.9 (provisional) for the previous month due to higher price of auto rickshaw / tempo / matador (2%).

FINAL INDEX FOR THE MONTH OF OCTOBER, 2016 (BASE YEAR: 2004-05=100)

For the month of October, 2016, the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) stood at 183.6 as compared to 182.9 (provisional) and annual rate of inflation based on final index stood at 3.79 percent as compared to 3.39 percent (provisional) respectively as reported on 14.11.2016.

Next date of press release: 14/02/2017 for the month of January, 2017

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: 2004-05=100)

MJPS