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WPI – Veg, onion prices down, but pulses remain high

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The overall wholesale price index for January declined by 1.0 percent, primarily due to lower fuel costs, but prices of primary articles and pulses continued to increase or remain high.

Total inflation is divided into three groups — primary articles (20% of total), fuel (15%) and manufactured goods (65%).

PRIMARY ARTICLES

Out of these, primary articles is the most important as it includes food items.

Price of primary articles increased by 4.6% year over year. But on a month on month basis, it was down by 1%.

Within primary articles, 72% of the weightage is for food items, and here too there is a pinch.

Food item prices were up 6% year on year at the wholesale level. Compared to the previous month, they moved up only 0.1%.

However, most of the increase in food prices was on account of three items — non-vegetarian foods, vegetables and pulses. The price of pulses were 45% higher in January this year compared to a year earlier, while those of vegetables were 12.5% higher.

When compared to December, pulses showed an increase of 5.1%, while vegetables showed a decrease of 2.6%.

Non-food primary articles also saw an increase of 8.2% year on year.

FUEL & POWER

The index for this major group declined by 2.9 percent due to lower price of furnace oil (18%), aviation turbine fuel (12%), bitumen (9%), high speed diesel (4%), petrol (2%) and kerosene (1%). However, the price of LPG (1%) moved up.

MANUFACTURED PRODUCTS

The index for this major group rose by 0.1 percent.

Comparison of items using previous month figures are as follows.

Within manufactured goods, Food Products group rose by 0.7 percent from the previous month due to higher price of sugar (5%), mixed spices and oil cakes (3% each), cotton seed oil and khandsari (2% each) and sooji (rawa), processed prawn, gola (cattle feed), sunflower oil, gingelly oil and gram powder (besan) (1% each).

However, the price of vanaspati (5%), tea leaf (unblended) and coffee powder (4% each), tea leaf (blended) (3%), mustard & rapeseed oil, copra oil and rice bran oil (2% each) and bakery products, groundnut oil, powder milk and gur (1% each) declined.

Beverages, Tobacco & Tobacco Products group rose by 0.6 percent for the previous month due to higher price of zarda (11%) and dried tobacco and cigarette (1% each).

Textiles group declined by 0.2 percent due to lower price of tyre cord fabric (4%) and man made fabric, cotton yarn and man made fibre (1% each). However, the price of jute sacking bag (4%), gunny and hessian cloth and jute sacking cloth (2% each) and woollen textiles (1%) moved up.

Wood & Wood Products group declined by 0.6 percent to 195.3 (provisional) from 196.4 (provisional) for the previous month due to lower price of plywood & fibre board (1%).

Paper & Paper Products group rose by 0.5 percent from the previous month due to higher price of books, periodicals, journals and corrugated sheet boxes (2% each) and card board (1 %). However, the price of paper cartons and boxes (2%) declined.

The index for ‘Leather & Leather Products’ group rose by 0.3 percent for the previous month due to higher price of leathers (1%).

Rubber & Plastic Products group declined by 0.4 percent due to lower price of rubber transmission belt (3%), dot pen with refill, polyester film, hdpe bag and reclaimed rubber (2% each) and rigid pvc, plastic films & sheets, plastic/pvc shoes, plastic and pvc chappals, hdpe woven fabric, rubber components & parts and other rubber products (1% each).

However, the price of plastic components and accessories (2%) and hdpe woven sacks and seamless tubes & pipes (1% each) moved up.

Chemicals & Chemical Products group declined by 0.1 percent because of lower price of non-cyclic compound (7%), lacquer & varnishes (4%) and ammonium sulphate and turpentine oil (1% each).

However, the price of synthetic resin (3%) and pesticides, organic manure and vitamins (1% each) moved up.

Non-Metallic Mineral Products rose by 0.6 percent due to higher price of marbles (9%) and grey cement (1%). However, the price of polished granite (2%) and lime and railway sleeper (1% each) declined.

Basic Metals, Alloys & Metal Products declined by 0.5 percent because of lower price of pipes, tubes, rods and strips (6%), zinc, sheets and CRC (3% each), HRC and gp and gc sheets (2% each) and steel structures, ferro silicon, plates, steel pipes & tubes, ferro manganese, aluminium, wire rods, rounds, steel castings and pig iron (1% each).

However, the price of billets and pencil ingots (3% each) and angles, rebars, sponge iron, joist & beams and steel rods (1% each) moved up.

The index for Transport, Equipment & Parts group rose by 0.1 percent due to higher price of railway brake gear (1%).

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