core sector communique

Index Numbers of Wholesale Prices in India (Base: 2004-05=100) Review for the month of April 2011

The official Wholesale Price Index for 'All Commodities' (Base: 2004-05 = 100) for the month April 2011 rose by 1.3 percent to 150.6 (Provisional) from 148.6 (Provisional) for the previous month.



INFLATION



The annual rate of inflation, based on monthly WPI, stood at 8.66% (Provisional) for the month of April' 2011 (over April 2010) as compared to 9.04% (Provisional) for the previous month and 10.88% during the corresponding month of the previous year. Build up inflation in the financial year so far was 1.34% compared to a build up of 1.76% 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 2.2 percent to 191.6 (Provisional) from 187.4 (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 Articles' group rose by 2.5 percent to 183.5 (Provisional) from 179.1 (Provisional) for the previous month due to higher prices of fruits & vegetables and coffee (10% each), bajra(7%), maize (6%), jowar (3%), urad and ragi (2% each) and moong, milk and fish-marine (1% each). However, the prices of barley (9%), tea (5%), masur and wheat (3% each), gram, egg, condiments & spices and fish-inland (2% each) and mutton, arhar and beef & buffalo meat (1% each) declined.



The index for 'Non- Food Articles’ 'group rose by 2.0 percent to 192.9 (Provisional) from 189.2 (Provisional) for the previous month due to higher prices of groundnut seed (9%),raw rubber (7%), sugarcane and logs & timber (5% each), cotton seed, gaur seed and castor seed (4% each), raw cotton (3%), sunflower (2%) and copra and niger seed (1% each). However, the prices of gingelly seed (18%), rape & mustard seed and fodder (3% each) and Mesta, raw jute, raw silk and coir fibre (1% each) declined.



The index for ‘Mineral’ group rose by 1.5 percent to 263.9 (Provisional) from 259.9 (Provisional) for the previous month due to higher prices of zinc concentrate (17%) and iron ore (5%). However, the prices of barytes (9%), chromite (5%), copper ore and steatite (3% each) and sillimanite (1%) declined.



FUEL & POWER (Weight 14.91%)



The index for this major group rose by 1.1 percent to 159.9 (Provisional) from 158.2 (Provisional) for the previous month due to higher prices of bitumen (9%), lubricants and light diesel oil (8% each), naphtha (6%), aviation turbine fuel (5%) and furnace oil (4%).



MANUFACTURED PRODUCTS (Weight 64.97%)



The index for this major group rose by 1.04 percent to 135.8 (Provisional) from 134.4 (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 0.5 percent to 145.8 (Provisional) from 145.1 (Provisional) for the previous month due to higher prices of tea leaf (unblended) (16%), processed prawn (10%), tea leaf (blended) (6%), groundnut oil and pickles (5% each), ice cream, cakes & muffins, canned meat , molasses and cotton seed oil (3% each), condensed milk (2%), rice bran oil , cashew nut (roasted), rice bran, powder milk, gur, mustard & rapeseed oil and sugar (1% each). However, the prices of mustard oil cake (7%), bread & buns and bagasse (6% each), rice bran extraction and copra oil (4% each), wheat bran, maida and wheat flour (atta) (2% each) and gola (cattle feed), cashew kernel, sunflower oil, oilcake, vegetables seeds, sooji ( rawa ) and biscuit / cookies (1% each) declined.



The index for 'Beverages, Tobacco & Tobacco Products' group rose by 1.4 percent to 154.6 (Provisional) from 152.4 (Provisional) for the previous month due to higher prices of rectified spirit (10%), soda based soft drinks (8%), beer (4%), aerated water (all types) (4%), soft drink concentrates (3%), non-alcoholic beverages (all types) and bidi (1% each).



The index for ' Textiles ' group rose by 0.9 percent to 130.6 (Provisional) from 129.4 (Provisional) for the previous month due to higher prices of cotton dressing gown (13%), woollen hosiery goods (12%), acrylic fibre (9%), cotton yarn (dyed) and jute yarn (7% each), viscose yarn (5%), polyester staple fibre, synthetic grey cloth, woollen cloth, viscose staple fibre, cotton durries, finished / processed cotton yarn (knitted) and synthetic yarn (4% each), blankets, acrylic yarn, cotton under garments and cotton trousers / pants (3% each) gunny and hessian cloth, cotton yarn (bleached), , grey cloth (bleached / unbleached) and cotton shirting (2% each) and woollen yarn, cotton knitted fabrics, cotton children suits and mixed fabrics (1% each ). However, the prices of woollen shawls (8%), woollen cardigans/sweaters (3%), woollen carpets (2%) and cotton cloth finished /processed, coir mats & matting, cotton linters, synthetic suitings and jute sacking cloth (1% each) declined.



The index for 'Wood & Wood Products' group rose by 0.5 percent to 151.8 (Provisional) from 151.1 (Provisional) for the previous month due to higher prices of insulation board and sawn timber posts / squares (2% each) and veneered particle board (1%). However, the prices of wooden chair (3%) declined.



The index for 'Paper & Paper Products' group rose by 1.3 percent to 129.8 (Provisional) from 128.1 (Provisional) for the previous month due to higher prices of paper rolls (12 %), card board (5%), kraft paper & bags (4%), paper cartons/boxes (3%), printing and writing paper (2%) and newsprint, newspaper, maplitho paper, bristle paper board , laminated paper and paper for printing / poster (1% each). However, the prices of corrugated sheet boxes (2%) declined.



The index for 'Leather & Leather Products' group rose by 1.5 percent to 125.4 (Provisional) from 123.6 (Provisional) for the previous month due to higher prices of leather shoe upper (4%), foot wear/ safety boot (3%), leather handbags / wallets (2%), and crome tanned leather and leather chappals/ sandals (1% each). However, the prices of leather shoe lining (1%) declined.



The index for 'Rubber & Plastic Products' group rose by 1.5 percent to 133.1 (Provisional) from 131.1 (Provisional) for the previous month due to higher prices of rubber transmission belt (14%), rubber seat assembly and rubber brakes (10% each), reclaimed rubber (9%), scooter / motor cycle tyre ( 8 %), plastic components / accessories and rigid PVC (7% each), plastic bottles (5%), rubber moulded goods (4%), HDPE woven fabric, seamless tubes & pipes, foot ball and plastic/PVC chappals (3% each), plastic films & sheets and cycle /cycle rickshaw tyre (2% each) and plastic rolls, plastic/PVC pipe, bus / truck tyre and plastic cabinet (1% each). However, the prices of polyester film (4%), synthetic rubber compound (3%) and rubber components & parts (1%) declined.



The index for 'Chemicals & Chemical Products' group rose by 1.3 percent to 130.0 (Provisional) from 128.3 (Provisional) for the previous month due to higher prices of olio resin & gelatin (16%), gelatine capsules (empty), chlorine (9%), fatty alcohol, menthol and rubber chemicals (7% each), essence/flavour used in food products, hair / body oils and shaving cream (5% each), formaldehyde and ammonia (gas / liquid) (4% each), additives, explosives, di-ammonium phosphate, organic solvent, nitrogen (gas / liquid), caustic soda & soda ash, urea, bleaching powder and phenol or phenol extract, (3% each) , dye & dye intermediates, ayurvedic medicines, polymers, petrochemical building blocks, synthetic rubber, non-cyclic compound , carbon di-sulphide and foundry chemical (2% each) and fatty acid , acid (inorganic), hardeners, dicalcium phosphate, titanium dioxide, endosulfan, vegetable starch, oxygen, synthetic resin acetic acid & its derivatives, glycol, polymer products, glycol, polyol, photographic goods, ice block/ cube (non edible), carbon & it's compound, perfume / scent , paracetamol/analgesic, lime & calcium carbonate and face / body powder (1% each). However, the prices of acid (organic) (13%), shampoo (8%), argon gas (7%), sulphur & sulphur powder (4%), ammonium sulphate (4%), zinc oxide, weedicides, leather chemicals and pigment & pigment intermediates (2% each) and agarbattis, cypermethrin , alcohol & mixture, adhesive & gum, naphthalene / aniline, castor oil, ink and washing powder (1% each) declined.



The index for ' Non-Metallic Mineral Products ' group rose by 0.5 percent to 148.3 (Provisional) from 147.6 (Provisional) for the previous month due to higher prices of glass bottles & bottleware (6%), asbestos corrugated sheet (5%), marbles (4%), toughened glass and concrete poles & posts (3% each), pressed glassware and graphite rods (2% each) and non-ferrous sanitary fittings and bricks & tiles (1% each). However, the prices of glass vials (18 %), ophthalmic lens (4%) and white cement, railway sleeper and stone (1% each) declined.



The index for ' Basic Metals, Alloys & Metal Products ' group rose by 1.6 percent to 148.8 (Provisional) from 146.5 (Provisional) for the previous month due to higher prices of silver (12%), pressure cooker (10%), welding rods , non ferrous alloys (9% each), steel structures and sponge iron (8% each), iron castings (7%), copper wire (all types) (6%), fixtures, rebars, and pencil ingots (4% each), welded pipe and copper / copper ingots (3% each), gold & gold ornaments, metal containers, copper products (other than wire), rounds, slab and joist & beams (2% each) and angles, aluminium ingots, melting scrap, aluminium seals , steel rods, wire rods, steel castings, utensils, cylinder, ferro manganese, sheets, plates, cylinder liners and metal moulds & dyes (1% each). .However, the prices of aluminium casting and chain (3% each), nuts/bolts/screw/ washers (2%) and iron & steel wire, non-ferrous casting & forging, steel frames and brass (1 % each) declined.



The index for ' Machinery & Machine Tools’ group rose by 1.0 percent to 123.6 (Provisional) from 122.4 (Provisional) for the previous month due to higher prices of cranes (17%), electric connectors / plugs /sockets/holders (10%), power supply (DC) and sewing machines (9% each), electric motor starters and optical instruments (7% each), watches (6%), filtration equipment, fans and semiconductor devices (5% each), electronic PCB /micro circuit, amplifier, lathes, compressors, conductor, control equipments and gear cutting machines (4% each), sprinkler, electrical pumps and battery charger (3% each), concrete vibrator & mixture, drive equipment, washing / laundry machines, textile machinery, oil mill machinery, electric generators, batteries, pneumatic tools, relay /contacter and air break switches/circuit breaker (2% each) and battery dry cells, distribution boards, weighing scales, electrical wires , PVC insulated cable, electric motors, TV sets, pump & assembly and meters / starter (non-electrical) (1% each). However, the prices of UPS / stabilizer (6%), computer peripherals (2%) and industrial valves, food/ beverages/tobacco processing machinery, electric switch gears and electric switches (1% each) declined.



The index for 'Transport, Equipment & Parts' group rose by 0.6 percent to 122.7 (Provisional) from 122.0 (Provisional) for the previous month due to higher prices of electric magnet brakes (6%), radiator & coolers and railway brake gear (5% each), motor cycle / scooter / moped and bus / mini bus / truck (2% each) and shafts (all kinds) and clutch & clutch plates (1% each). However, the prices of gauges (10%), geared motor and crankshafts (5% each), piston & compressor (2%) and gear boxes & parts and bi-cycles (1% each) declined.





FINAL INDEX FOR THE MONTH OF FEBRUARY, 2011 (BASE YEAR: 2004-05=100)



For the month of February, 2011 the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) stood at 148.1 as compared to 146.0 (Provisional) and annual rate of inflation based on final index stood at 9.54 percent as compared to 8.31 percent (Provisional) reported on 15.04.2011