Deflationary trend continues! June WPI comes at -2.40% vs -2.36% in May

The annual rate of inflation, based on monthly WPI, stood at -2.40% (provisional) for the month of June, 2015 (over June, 2014) as compared to -2.36% (provisional) for the previous month and 5.66% during the corresponding month of the previous year.

In a lowest since November 2014, the annual rate of inflation, based on monthly WPI, extended its deflationary trend for eight successive month and eased further to -2.40% for June as compared to -2.36% for May. The same stood at 5.66% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 1.42% compared to a build up rate of 1.50% in the corresponding period of the previous year.

The annual rate of inflation, based on monthly WPI, stood at -2.40% (provisional) for the month of June, 2015 (over June, 2014) as compared to -2.36% (provisional) for the previous month and 5.66% during the corresponding month of the previous year.

Build up inflation rate in the financial year so far was 1.42% compared to a build up rate of 1.50% in the corresponding period of the previous year.

PRIMARY ARTICLES (Weight 20.12%)

The index for this major group rose by 1.4 percent to 248.4 (provisional) from 244.9 (provisional) for the previous month.  The groups and items which showed variations during the month are as follows:-

The index for ‘Food Articles’ group rose by 1.3 percent to 257.3 (provisional) from 253.9  (provisional) for the previous month due to higher price of arhar (11%), poultry chicken, masur, urad and gram (9% each),  tea (7%), moong and egg (6 % each), condiments & spices and fruits & vegetables (4% each), fish-marine (3%), maize (2%) and rice and coffee (1% each).

However, the price of fish-inland (13%), barley, bajra and wheat (2% each) and beef & buffalo meat,  jowar and ragi (1% each) declined.

The index for ‘Non-Food Articles’  group rose by 2.2 percent to 218.5 (provisional) from 213.9 (provisional) for the previous month due to higher price of  niger seed (16%), raw jute (15%), sugarcane and gingelly seed (7% each), safflower (kardi seed), raw rubber and groundnut seed (5% each), rape & mustard seed, raw wool, castor seed and cotton seed (4% each), fodder (3%) and sunflower and mesta (1% each).  However, the price of copra (coconut) and soyabean (6% each) and       raw cotton (1%) declined.

The index for  ‘Minerals’  group rose by 0.3 percent to  248.5 (provisional) from 247.7  (provisional) for the previous month due to higher price of sillimanite (17%), crude petroleum (3%), copper ore (2%) and chromite (1%).  However, the price of      manganese ore (8%), magnesite (7%), barytes (6%), iron ore (4%) and zinc concentrate and phosphorite (1% each) declined.

FUEL & POWER (Weight 14.91%)

The index for this major group rose by  0.6 percent to 191.0 (provisional) from 189.8 (provisional) for the previous month due to higher price of aviation turbine fuel (9%), petrol (2%) and kerosene, lignite, high speed diesel and bitumen (1% each).

MANUFACTURED PRODUCTS (Weight 64.97%)

The index for this major group rose by  0.1 percent to 154.2 (provisional) from 154.1  (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  0.8  percent to 173.1 (provisional) from 171.7 (provisional) for the previous month due to higher price of gram powder (besan) (17%), tea leaf (blended) and tea leaf (unblended) (13% each), mustard & rapeseed oil (6%), oil cakes and cotton seed oil (5% each), gur (4%), groundnut oil (3%), sunflower oil (2%) and      processed prawn, sugar confectionary and ghee (1% each).  However, the price of gingelly oil (6%), mixed spices (5%), bakery products (4%), sugar (3%), khandsari (2%) and sooji (rawa), wheat flour (atta) and maida (1% each) declined.

The index for ‘Beverages, Tobacco & Tobacco Products’ group rose by 1.8 percent to 206.7 (provisional) from 203.0 (provisional) for the previous month due to higher price of cigarette (5%), zarda and beer (2% each) and bidi (1%).  However, the price of rectified spirit (1%) declined.

The index for ‘Textiles’ group rose by 0.6 percent to 140.9 (provisional) from 140.1 (provisional) for the previous month due to higher price of gunny and hessian cloth and man made fibre (3% each) and man made fabric and cotton fabric (1% each). However, the price of tyre cord fabric (4%), jute yarn (3%) and jute sacking cloth (1%) declined.

The index for ‘Wood & Wood Products’ group rose by 1.8 percent to 196.3 (provisional) from 192.9 (provisional) for the previous month due to higher price of plywood & fibre board (4%).

The index for ‘Paper & Paper Products’ group rose by 0.1 percent to 152.9 (provisional) from 152.8 (provisional) for the previous month due to higher price of kraft  paper & bags (1%).  However, the price of newsprint (4%) declined.

The index for ‘Leather & Leather Products’ group rose by 1.3 percent to 145.3 (provisional) from 143.5 (provisional) for the previous month due to higher price of leathers (4%) and leather footwear (1%).

The index for ‘Rubber & Plastic Products’ group rose by  0.4  percent to 149.4 (provisional) from 148.8 (provisional) for the previous month due to higher price of plastic products and tubes (1% each).

The index for ‘Chemicals & Chemical Products’ group rose by 0.3 percent to 151.4 (provisional) from 150.9 (provisional) for the previous month due to higher price of non-cyclic compound (6%) and vitamins, washing soap, rubber chemicals,     washing powder, organic manure, basic inorganic chemicals and toilet soap (1% each).  However, the price of      ammonium sulphate (5%), antacid and digestive preparations (4%) and paints and turpentine oil (1% each) declined.

The index for ‘Non-Metallic Mineral Products’ group declined by 0.6 percent to 175.8 (provisional) from 176.9 (provisional) for the previous month due to lower price of marbles (6%), slag  cement (4%) and bricks & tiles and glass bottles & bottleware (1% each).  However, the price of railway sleeper (2%) moved up.

The index for ‘Basic Metals, Alloys & Metal Products’ group declined by 1.9 percent to 158.7 (provisional) from 161.8 (provisional) for the previous month due to lower price of copper products (other than wire) (13%), steel rods (12%),     ferro manganese (4%), wire rods, HRC, pig iron and CRC (3% each), aluminium, melting scrap, billets, rounds, angles,     sponge iron, iron castings, plates and silver (2% each) and pencil  ingots, sheets, ferro chrome, nuts/bolts/screw/ washers,     gp/gc sheets, rebars, steel castings, joist & beams and steel: pipes & tubes (1% each).

The index for ‘Machinery & Machine Tools’ group rose by  0.1 percent to 135.0 (provisional) from 134.9 (provisional) for the previous month due to higher price of industrial furnaces (4%), insulators (3%) and t.v.sets, pvc insulated cable and ball/roller bearing (1% each).  However, the price of electric switch gears and fibre optic cable (2% each) and electric motors (1%) declined.

The index for ‘Transport, Equipment & Parts’ group rose by  0.1 percent to 137.7 (provisional) from 137.6 (provisional) for the previous month due to higher price of bi-cycles (2%) and railway brake gear (1%).  However, the price of shafts (all kinds) (2%) and railway  axle & wheel (1%) declined.