Wholesale Inflation Falls To 0.33% From August’s 1.08%

The Reserve Bank of India (RBI) tracks consumer inflation primarily while formulating its monetary policy.

NEW DELHI: According to government data released on Monday, Wholesale Price Index (WPI) for ‘All Commodities’ for the month of September has declined by 0.1 per cent to 121.3 (provisional) from 121.4 (provisional) for the previous month.

The annual rate of inflation, based on the monthly wholesale price index (WPI), was at 5.22 per cent in September 2018.

The annual rate of inflation, based on monthly WPI, stood at 0.33% (provisional) for the month of September 2019 (over September 2018) as compared to 1.08% (provisional) for the previous month and 5.22% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 1.17% compared to a build-up rate of 3.96% 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 group is summarised below:-

The index for this major group declined by 0.6% to 143.0 (provisional) from 143.9 (provisional) for the previous month. The groups and items which showed variations during the month are as follows:-

The index for ‘Food Articles’ group declined by 0.4% to 155.3 (provisional) from 155.9 (provisional) for the previous month due to lower price of fruits & vegetables and pork (3% each), jowar, bajra and arhar (2% each) and fish-marine, tea and mutton (1% each). However, the price of condiments & spices (4%), betel leaves and peas/chawali (3% each), egg and ragi (2% each) and rajma, wheat, barley, urad, fish-inland, beef and buffalo meat, moong, poultry chicken, paddy and maize (1% each) moved up.

The index for ‘Non-Food Articles’ group declined by 2.5% to 126.7 (provisional) from 129.9 (provisional) for the previous month due to lower price of floriculture (25%), raw rubber (8%), gaur seed and hides (raw) (4% each), skins (raw) and raw cotton (3% each), fodder (2%) and coir fibre and sunflower (1% each). However, the price of raw silk (8%), soyabean (5%), gingelly seed (sesamum) (3%), raw jute (2%) and niger seed, linseed and rape & mustard seed (1% each) moved up.

The index for ‘Minerals’ group rose by 6.6% to 163.6 (provisional) from 153.4 (provisional) for the previous month due to higher price of copper concentrate (14%), lead concentrate (2%) and limestone and zinc concentrate (1% each).

The index for ‘Crude Petroleum & Natural Gas’ group declined by 1.9% to 86.4 (provisional) from 88.1 (provisional) for the previous month due to lower price of crude petroleum (3%).

The index for this major group declined by 0.5% to 100.2 (provisional) from 100.7 (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% to 124.8 (provisional) from 124.0 (provisional) for the previous month due to higher price of coking coal (2%).

The index for ‘Mineral Oils’ group declined by 1.1% to 90.5 (provisional) from 91.5 (provisional) for the previous month due to lower price of furnace oil (10%), naphtha (4%), petroleum coke (2%) and bitumen, ATF and petrol (1% each). However, the price of LPG (3%) and kerosene (1%) moved up.

The index for this major group rose by 0.1% to 117.9 (provisional) from 117.8 (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 rose by 0.9% to 133.6 (provisional) from 132.4 (provisional) for the previous month due to higher price of manufacture of macaroni, noodles, couscous and similar farinaceous products and other meats, preserved/processed (5% each), processing and preserving of fish, crustaceans and molluscs and products thereof and copra oil (3% each), coffee powder with chicory, vanaspati, rice bran oil, butter, ghee and manufacture of health supplements (2% each) and manufacture of prepared animal feeds, spices (including mixed spices), palm oil, gur, rice, non-basmati, sugar, sooji (rawa), wheat bran, rapeseed oil and maida (1% each). However, the price of castor oil (3%), manufacture of cocoa, chocolate and sugar confectionery and chicken/duck, dressed – fresh/frozen (2% each) and manufacture of processed ready to eat food, cottonseed oil, bagasse, groundnut oil , ice cream and gram powder (besan) (1% each) declined.

The index for ‘Manufacture of Beverages’ group rose by 0.1% to 124.1 (provisional) from 124.0 (provisional) for the previous month due to higher price of country liquor and rectified spirit (2% each). However, the price of bottled mineral water (2%) declined.

The index for ‘Manufacture of Tobacco Products’ group rose by 0.1% to 154.0 (provisional) from 153.9 (provisional) for the previous month due to higher price of bidi (1%).

The index for ‘Manufacture of Textiles’ group declined by 0.3% to 117.9 (provisional) from 118.3 (provisional) for the previous month due to lower price of synthetic yarn (2%) and cotton yarn and manufacture of knitted and crocheted fabrics (1% each). However, the price of manufacture of other textiles and manufacture of made-up textile articles, except apparel (1% each) moved up.

The index for ‘Manufacture of Wearing Apparel’ group rose by 1.9% to 138.9 (provisional) from 136.3 (provisional) for the previous month due to higher price of manufacture of wearing apparel (woven), except fur apparel and manufacture of knitted and crocheted apparel (1% each).

The index for ‘Manufacture of Leather and Related Products’ group declined by 0.4% to 118.8 (provisional) from 119.3 (provisional) for the previous month due to lower price of belt & other articles of leather (3%), chrome-tanned leather (2%) and waterproof footwear (1%). However, the price of canvas shoes (2%) and harness, saddles & other related items and leather shoe (1% each) moved up.

The index for ‘Manufacture of Wood and of Products of Wood and Cork ‘ group declined by 0.1% to 134.0 (provisional) from 134.1 (provisional) for the previous month due to lower price of wooden block – compressed or not, timber/wooden plank, sawn/resawn and plywood block boards (1% each). However, the price of wooden splint (5%) and wooden panel and wooden box/crate (1% each) moved up.

The index for ‘Manufacture of Paper and Paper Products’ group declined by 0.5% to 120.9 (provisional) from 121.5 (provisional) for the previous month due to lower price of corrugated sheet box (3%), newsprint (2%) and map litho paper, bristle paper board and cardboard (1% each). However, the price of paper carton/box and corrugated paper board (1% each) moved up.

The index for ‘Printing and Reproduction of Recorded Media ‘ group declined by 1.1% to 149.4 (provisional) from 151.0 (provisional) for the previous month due to lower price of sticker plastic (6%), journal/periodical (5%) and printed form & schedule (1%). However, the price of printed books and newspaper (1% each) moved up.

The index for ‘Manufacture of Chemicals and Chemical Products’ group declined by 0.3% to 117.9 (provisional) from 118.3 (provisional) for the previous month due to lower price of hydrogen peroxide, aromatic chemicals and sulphuric acid (5% each), sodium silicate (3%), caustic soda (sodium hydroxide), organic chemicals, other petrochemical intermediates, alcohols, printing ink, polyester chips or polyethylene terephthalate (pet) chips, dyestuff/dyes incl. dye intermediates and pigments/colours, insecticide and pesticide, ammonium nitrate, ammonium phosphate and polystyrene, expandable (2% each), diammonium phosphate, ethylene oxide, organic solvent, polyethylene, explosive, agarbatti, phthalic anhydride, ammonia liquid, nitric acid, creams & lotions for external application, adhesive excluding gum and powder coating material (1% each). However, the price of monoethyl glycol (7%), acetic acid and its derivatives (4%), menthol and adhesive tape (non-medicinal) (3% each) and catalysts, face/body powder, varnish (all types) and ammonium sulphate (2% each) and oleoresin, camphor, aniline (including pna, ona, ocpna), ethyl acetate, alkylbenzene, agrochemical formulation, phosphoric acid, polyvinyl chloride (PVC), fatty acid, polyester film(metalized), other inorganic chemicals, mixed fertilizer, XLPE compound and organic surface-active agent (1% each) moved up.

The index for ‘Manufacture of Pharmaceuticals, Medicinal Chemical and Botanical Products’ group rose by 0.2% to 125.6 (provisional) from 125.4 (provisional) for the previous month due to higher price of anti-cancer drugs (18%), antiseptics and disinfectants, ayurvedic medicaments and cotton wool (medicinal) (1% each). However, the price of antiretroviral drugs for HIV treatment and steroids and hormonal preparations (including anti-fungal preparations) (3% each), plastic capsules, antipyretic, analgesic, anti-inflammatory formulations and antidiabetic drug excluding insulin (i.e. tolbutamide) (2% each) and antioxidants, vials/ampoule, glass, empty or filled and antibiotics & preparations thereof (1% each) declined.

The index for ‘Manufacture of Rubber and Plastics Products’ group declined by 0.1% to 108.1 (provisional) from 108.2 (provisional) for the previous month due to lower price of plastic button and plastic furniture (6% each), polyester film (non-metalized) and rubber crumb (3% each), solid rubber tyres/wheels, tractor tyre, plastic box/container  and plastic tank (2% each) and toothbrush, conveyer belt (fibre-based), cycle/cycle rickshaw tyre, rubber moulded goods, 2/3 wheeler tyre, rubber cloth/sheet and v belt (1% each). However, the price of plastic components (3%), PVC fittings & other accessories and polythene film (2% each) and acrylic/plastic sheet, plastic tape, polypropylene film, rubberized dipped fabric, rubber tread, plastic tube (flexible/non-flexible) and rubber components & parts (1% each) moved up.

The index for ‘Manufacture of Other Non-Metallic Mineral Products’ group declined by 0.6% to 116.8 (provisional) from 117.5 (provisional) for the previous month due to lower price of cement superfine (5%), slag cement (3%) and white cement, fibreglass incl. sheet, granite, glass bottle, toughened glass, graphite rod, non-ceramic tiles, ordinary portland cement and asbestos corrugated sheet (1% each). However, the price of ordinary sheet glass (6%), lime and calcium carbonate (2%) and marble slab, plain bricks (1% each) moved up.

The index for ‘Manufacture of Fabricated Metal Products, Except Machinery And Equipment’ group rose by 0.9% to 115.1 (provisional) from 114.1 (provisional) for the previous month due to higher price of sanitary fittings of iron & steel (7%), boilers (6%), cylinders, iron/steel hinges, forged steel rings and  electrical stamping- laminated or otherwise (2% each) and hose pipes in set or otherwise, iron/steel cap and, steel door (1% each). However, the price of lock/padlock (4%) and steel pipes, tubes & poles, steel drums and barrels, pressure cooker, steel container, copper bolts, screws, nuts and aluminium utensils (1% each) declined.

The index for ‘Manufacture of Computer, Electronic and Optical Products’ group declined by 1.0% to 110.1 (provisional) from 111.2 (provisional) for the previous month due to lower price of colour TV (4%), electronic printed circuit board (PCB)/micro circuit (3%) and UPS in solid-state drives and air conditioner (1% each).

The index for ‘Manufacture of Electrical Equipment’ group declined by 0.5% to 110.5 (provisional) from 111.1 (provisional) for the previous month due to lower price of fibre optic cables and refrigerators (3% each), PVC insulated cable, connector/plug/socket/holder-electric and electric accumulators (2% each) and copper wire, insulator , generators & alternators and light fitting accessories (1% each). However, the price of rotor/magneto rotor assembly (8%), domestic gas stove and AC motor (4% each), electric switchgear control/starter (2%) and jelly-filled cables, rubber insulated cables, electric welding machine and amplifier (1% each) moved up.

The index for ‘Manufacture of Machinery and Equipment’ group rose by 0.7% to 113.9 (provisional) from 113.1 (provisional) for the previous month due to higher price of dumper (9%), deep freezers (8%), air gas compressor including compressor for refrigerator and packing machine (4% each), pharmaceutical machinery and air filters (3% each), conveyors – non-roller type, hydraulic equipment, cranes, hydraulic pump and precision machinery equipment/form tools (2% each) and excavator, pump sets without motor, chemical equipment & system, injection pump, lathes , filtration equipment, harvesters and mining, quarrying & metallurgical machinery/parts (1% each). However, the price of pressure vessel and tank for fermentation & other food processing (4%), separator (3%) and grinding or polishing machine, moulding machine, loader, centrifugal pumps, roller and ball bearings and manufacture of bearings, gears, gearing and driving elements (1% each) declined.

The index for ‘Manufacture of Motor Vehicles, Trailers and Semi-Trailers’ group declined by 0.5% to 112.9 (provisional) from 113.5 (provisional) for the previous month due to lower price of engine (4%) and seat for motor vehicles, filter element, body (for commercial motor vehicles), release valve and crankshaft (1% each). However, the price of radiators & coolers, passenger vehicles, axles of motor vehicles, headlamp, cylinder liners, shafts of all kinds and brake pad/brake liner/brake block/brake rubber, others (1% each) moved up.

The index for ‘Manufacture of Other Transport Equipment’ group rose by 0.3% to 118.0 (provisional) from 117.6 (provisional) for the previous month due to higher price of tanker and scooters (1% each).

The index for ‘Manufacture of Furniture’ group rose by 0.6% to 132.2 (provisional) from 131.4 (provisional) for the previous month due to higher price of wooden furniture (2%) and foam and rubber mattress and steel shutter gate (1% each). However, the price of plastic fixtures (1%) declined.

The index for ‘Other Manufacturing’ group rose by 3.2% to 113.8 (provisional) from 110.3 (provisional) for the previous month due to higher price of silver (11%), gold & gold ornaments (3%), stringed musical instruments (incl. santoor, guitars, etc.) (2%) and non-mechanical toys, cricket ball, intraocular lens, playing cards, cricket bat and football (1% each). However, the price of plastic moulded-others toys (1%) declined.

The rate of inflation based on WPI Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group increased from 5.75% in August 2019 to 5.98% in September 2019.

For the month of July, 2019, the final Wholesale Price Index for ‘All Commodities’ (Base: 2011-12=100) stood at 121.3 as compared to 121.2 (provisional) and the annual rate of inflation based on final index stood at 1.17% as compared to 1.08% (provisional) respectively as reported on 15.07.2019.

Commerce Minister Piyush Goyal has said that the government is probing Flipkart and Amazon for alleged predatory pricing.

MUMBAI (Maharashtra): Union Commerce Minister Piyush Goyal has said that the government is probing WalMart-owned Flipkart and Amazon over the alleged predatory pricing. Speaking to reporters in Mumbai, Goyal said detailed questionnaires have been sent to these companies and their response is awaited.

Stating that e-commerce companies have no right to sell products at discounts that will result in retail sector incurring major loss, Goyal said these platforms are only allowed to connect potential sellers and buyers.

The Minister said stringent action will be taken if there is a violation of any law in the letter or in spirit.

The matter comes after the Confederation of All India Traders had written to the Ministry seeking an audit into the business model of all e-commerce firms and the foreign-owned Amazon and Flipkart in particular.

The letter had asked the government to verify Amazon and Flipkart’s claims that individual brands are offering discounts and not them.

NEW DELHI: Less than a month after reconstituting the Economic Advisory to the Prime Minister, the centre has added three more part-time members to the advisory body – Neelkanth Mishra, Nilesh Shah and Anantha Nageswaran.

Mishra is the India Equity Strategist for Credit Suisse, Shah is the Managing Director of Kotak Mahindra Asset Management, and Nageswaran is the Dean of IFMR Graduate School of Business. Since they are part-time members, they may not have to take leave from their current posts.

A letter which was issued by cabinet secretariat on October 16 says, “In continuation of this Secretariat (EAC-PM) communication of even no. dated 24.09.2019 regarding reconstitution of the Economic Advisory Council to Prime Minister, Prime Minister has approved the appointment of the following as Part-Time Members in the EAC-PM for a period of two years from the date of constitution of the present EAC, or until further orders.”

Last month, the centre had reconstituted the EAC-PM for a period of another two years. Rathin Roy from the National Institute of Public Finance and Policy and Shamika Ravi of Brookings Institution were dropped as part-time members. Sajjid Chenoy, India economist at JP Morgan was the new part-time member announced at that time.

The EAC-PM was revived in September 2017 with a term of two years. It replaced the erstwhile PMEAC which was headed by former Reserve Bank of India governor C Rangarajan during the terms of former Prime Minister Manmohan Singh

Bhoria informed that PMC is in the process of recasting its balance sheet to present a true and fair picture of its accounts.

MUMBAI (Maharashtra): RBI-appointed administrator of crisis-hit Punjab and Maharashtra Cooperative – PMC Bank, J B Bhoria, met Governor Shaktikanta Das and other senior officials in Mumbai today to discuss the bank’s operations.

In a statement, Bhoria informed that PMC is in the process of recasting its balance sheet to present a true and fair picture of its accounts.

It further assured that the bank will make all efforts to safeguard the interests of depositors and other stakeholders.

With deposits of over 11,000 crore rupees and total loan assets of over 9,000 crore rupees, the bank is reported to have given over 6,500 crore rupees in loans to realty firm HDIL.

According to the Mumbai Police’s Economic Offences Wing, HDIL’s loans turned into non-performing assets, but the bank management shielded this huge exposure from RBI’s scrutiny.

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Post time: Oct-19-2019
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