Marginally higher from May 2010
The official Wholesale Price Index
for 'All Commodities' (Base:
1993-94 = 100) for the month of June, 2010 rose by 0.7% to 259.8
(Provisional) from 258.1 (Provisional) for the previous month.
The annual rate of inflation, based on monthly WPI, stood at 10.55%
(Provisional) for the month of June, 2010 (over June, 2009) as compared
to 10.16% (Provisional) for the previous month and -1.01% during the
corresponding month of the previous year. Build up inflation in the financial year so far was 2.53%
compared to a build up of 2.98% in the corresponding period of the
previous year.
The index primary articles group
rose by 0.7% to 302.1 (Provisional) from 299.9 (Provisional) for the
previous month. The index for 'Food Articles' group rose by 0.2% to
295.2 (Provisional) from 294.6 (Provisional) for the previous month due
to higher prices of urad (9%), beef & buffalo meat (7%),
fish-marine (5%), condiments & spices, poultry chicken and maize (3%
each) and tea, barley and jowar (1% each). However, the prices of
coffee (5%) and bajra (2%) declined.
The index for 'Non-Food Articles' group rose by 1.2% to 286.4
(Provisional) from 283.1 (Provisional) for the previous month due to
higher prices of fodder (11%), raw rubber and castor seed (6% each), raw
cotton, groundnut seed and copra (2% each) and raw silk (1%). However,
the prices of sunflower (4%) and skins (raw) and niger seed (1% each)
declined.
The index for 'Minerals' group rose by 5.9% to 722.7 (Provisional) from
682.2 (Provisional) for the previous month due to higher prices of
chromite (21%), magnesite (15%), iron ore (8%) and steatite (1%).
However, the prices of vermiculite (25%), manganese ore (10 %) and feldspar (8%) declined.
The index for fuel and power group rose by 1.7% to 374.4 (Provisional)
from 368.2 (Provisional) for the previous month due to higher prices of
kerosene (9%), lubricants (6%),
electricity (4%), liquefied petroleum gas (3%), petrol (2%) and high
speed diesel oil (1%). However, the prices of aviation turbine fuel
(6%), naphtha (5%), furnace oil (3%), bitumen (2%) and light diesel oil
(1%) declined.
The index for manufactured product group rose by 0.2% to 219.5
(Provisional) from 219.1 (Provisional) for the previous month.
The index for 'Food Products'
group declined by 0.9% to 244.2 (Provisional) from 246.4 (Provisional)
for the previous month due to lower prices of sooji (rawa) (7%), sugar
(3%) and coffee powder, oil cakes, gingelly oil and maida (1% each).
However, the prices of groundnut oil (6%), rice bran oil (3%), cakes
& sweet roles and gur (2% each) and salt, bran (all kinds), biscuits
and soyabean oil (1% each) moved up.
The index for 'Beverages, Tobacco & Tobacco Products' group rose by
0.3% to 325.4 (Provisional) from 324.3 (Provisional) for the previous
month due to higher prices of bidi (2%).
The index for 'Textiles' group rose by 0.7% to 164.2 (Provisional) from
163.0 (Provisional) for the previous month due to higher prices of
polyester staple fibre and cotton grey drills & jeans (7% each),
terry cotton shirting (6%), cotton grey cloth (others) and polyester
yarn (5% each), other cotton yarn and nylon filament yarn (3% each),
hessian & sacking bags, cotton knitted garments and dhoties, sarees
& voils (2% each) and woollen cloth and cotton yarn-hanks (1% each).
However, the prices of texturised yarn (4%), cotton yarn-cones (2%) and
hessian cloth (1%) declined.The index for 'Wood & Wood Products'
group rose by 5.4% to 272.4 (Provisional) from 258.5 (Provisional) for
the previous month due to higher prices of plywood commercial planks
(11%).
The index for 'Paper & Paper Products' group rose by 0.2% to 207.8
(Provisional) from 207.3 (Provisional) for the previous month due to
higher prices of newsprint (2%). However, the prices of cream laid
woven paper (1%) declined.The index for 'Leather & Leather Products'
group rose by 0.6% to 167.0 (Provisional) from 166.0 (Provisional) for
the previous month due to higher prices of footwear western type (1%).
The index for 'Rubber & Plastic
Products' group rose by 1.6% to 180.7 (Provisional) from 177.9
(Provisional) for the previous month due to higher prices of cycle tubes
(5%), cycle tyres (4%), giant tyres, giant tubes, tractor tyres and
motor tyres (2% each). However, the prices of pvc fitting &
accessories (4%) declined.
The index for 'Chemicals & Chemical Products' group rose by 1.3% to
239.5 (Provisional) from 236.5 (Provisional) for the previous month due
to higher prices of epoxy resins (45%), calcium ammonium nitrate
n-content (20%), liquid chlorine (14%), complex fertilizer n_content
(4%), urea n_content, complex fertilizers-npk content, hair oil and
varnishes (3% each), di_ammonium phosphate n-content, acid (all kinds)
and bopp film (2% each) and diammonium phosphate, titanium dioxide and
synthetic resins (1% each). However, the prices of benzene (6%),
purified terephthalic acid (pta) (4%), p.v.c. resins and adhesives (2%
each) and other fertilizers (1%) declined.
The index for 'Non-Metallic Mineral Products' group declined by 3.0% to
219.2 (Provisional) from 225.9 (Provisional) for the previous month due
to lower prices of cement (4%). The index for 'Machinery & Machine
Tools' group rose by 0.1% to 178.6 (Provisional) from 178.5
(Provisional) for the previous month due to higher prices of air &
gas compressors (3%) and ball bearings (1%). However, the prices of
hydraulic pumps (4%), material handling equipment (2%) and enamelled
copper wires (1%) declined.
The index for 'Transport
Equipment & Parts' group rose by 0.8% to 179.5 (Provisional) from
178.1 (Provisional) for the previous month due to higher prices of broad
gauge passenger carriage (8%),
broad gauge other coaching vehicles (4%) and bus chassis (diesel) and
truck chassis (diesel) (2% each).
April data revised upwards
For the month of April, 2010, the final wholesale price index for 'All
Commodities' (Base:1993-94=100) stood at 257.5 as compared to 253.7
(Provisional) and annual rate of inflation based on final index stood at
11.23% as compared to 9.59% (Provisional) reported earlier.
The WPI inflation in June 2010 has marginally higher compared with May
2010. On other hand, inflation data for April 2010 has witnessed upward
revision that has added concern for the price stability. The hike in
petrol, diesel and lpg prices resulted in upward revision for April
data.
The RBI will announce its first quarter policy review in the last week of July 2010. At the
background of growing inflation, the apex bank would like to continue
with its tightening mode.
