ASSOCHAM logo (file)Apex industrial body ASSOCHAM has said that it is high time the RBI took a close look at the inflation data and calibrates the interest rates.

The WPI based inflation has touched a five – year low and the retail level of price rise too has reached the lowest since January, 2012. “We could not have asked for more in so far as this key area of the macroeconomic picture is concerned. Falling crude oil prices have played a decisive role in taming inflation and fortunately, the outlook on this score looks on the positive for India”, said ASSOCHAM President Rana Kapoor.

“The focus, therefore, must shift now to reviving the GDP expansion and industrial growth in particular which still remains low key as consumer demand stays shrunk due to , among other factors, high interest rates.  It is the industrial demand and renewal in investment which will create new jobs and take India’s economy back to 7-8 per cent growth”, Shri Kapoor added.

The Wholesale Price Index for ‘All Commodities’ for September, 2014 declined by 0.4 percent to 185.0 (provisional) from 185.7 (provisional) for the previous month.

INFLATION

The annual rate of inflation, based on monthly WPI, stood at 2.38 per cent (provisional) for September, 2014 (over September,2013) as compared to 3.74 per cent (provisional) for the previous month and 7.05 per cent during the corresponding month of the previous year.

The movement of the index for the various commodity groups is summarized below:-

PRIMARY ARTICLES (Weight 20.12%)

The index for this major group declined by 1.3 percent to 258.2 (provisional) from 261.7 (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 1.4 percent to 261.8 (provisional) from 265.4 (provisional) for the previous month due to lower price of tea and fruits & vegetables (5% each), maize (4%), poultry chicken and fish-marine (3% each) and condiments & spices, jowar, pork and moong (1% each).  However, the price of egg and coffee (4% each), fish-inland and barley (3% each), masur and arhar (2% each) and rice, bajra, gram, ragi and urad (1% each) moved up.

The index for Non-Food Articles group declined by 2.0 percent to 214.3 (provisional) from 218.7 (provisional) for the previous month due to lower price of flowers (17%), safflower (kardi seed) (16%), soyabean (13%), raw rubber (8%), gingelly seed (5%), mesta, copra (coconut) and raw cotton (3% each), linseed and castor seed (2% each) and coir fibre (1%).  However, the price of fodder (8%), groundnut seed (6%), guar seed (5%), niger seed (4%) and raw silk (1%) moved up.

The index for Minerals group rose by 0.1 percent to 347.3 (provisional) from 347.0 (provisional) for the previous month due to higher price of chromite (3%), iron ore and steatite (2% each).  However, the price of barytes (21%), sillimanite       (9%), copper ore (4%), manganese ore (3%) and zinc concentrate (1%) declined.

FUEL & POWER (Weight 14.91%)

The index for this major group declined by 0.3 percent to 213.4 (provisional) from 214.0 (provisional) for the previous month due to lower price of petrol (4%), bitumen (2%) and aviation turbine fuel and furnace oil (1% each).  However, the price of lubricants (4%) and high speed diesel (1%) moved up.

MANUFACTURED PRODUCTS (Weight 64.97%)

The index for this major group remained unchanged at its previous month`s level of 155.8 (provisional). The groups and items for which the index showed variations during the month are as follows:-

The index for Food Products group rose by 0.2 percent to 175.1 (provisional) from 174.7 (provisional) for the previous month due to higher price of powder milk (8%), tea leaf (blended) (5%), ghee (3%), bakery products (2%) and groundnut oil and oil cakes (1% each).  However, the price of tea dust (unblended) (5%), gram powder (besan), rice bran oil and vanaspati (2% each) and sunflower oil, gur, gingelly oil, soyabean oil, sugar, wheat flour (atta) and palm oil (1% each) declined.

The index for Beverages, Tobacco & Tobacco Products group rose by 0.7 percent to 201.0 (provisional) from 199.6 (provisional) for the previous month due to higher price of cigarette (3%).  However, the price of chewing tobacco (scented or not) (5%) declined.

The index for Textiles group declined by 0.1 percent to 144.1 (provisional) from 144.2 (provisional) for the previous month due to lower price of jute sacking cloth (3%) and cotton yarn (1%).  However, the price of  jute yarn (5%), jute sacking bag (2%) and gunny and hessian cloth, man made fibre and man made fabric (1% each) moved up.

The index for Wood & Wood Products group rose by 0.4 percent to 186.1 (provisional) from 185.4 (provisional) for the previous month due to higher price of plywood & fibre board (1%).

The index for Paper & Paper Products group rose by 0.3 percent to 150.0 (provisional) from 149.6 (provisional) for the previous month due to higher price of paper rolls (6%), laminated paper (2%) and paper cartons/boxes (1%).  However, the price of books/ periodicals/ journals (2%) declined.

The index for Leather & Leather Products group declined by 0.1 percent to 146.6 (provisional) from 146.7 (provisional) for the previous month due to lower price of footwear/safety boot and other leather footwear (1% each).  However, the price of leather garments & jackets (1%) moved up.

The index for Rubber & Plastic Products group rose by 0.2 percent to 151.2 (provisional) from 150.9 (provisional) for the previous month due to higher price of hdpe woven fabric (8%), tooth brush (4%), plastic containers and rubber transmission belt (3% each), polyester chips (2%) and plastic/pvc chappals, hdpe woven sacks and reclaimed rubber (1% each).  However, the prices of plastic /pvc pipe, plastic/pvc suitcases, expandable polystyrene and plastic rolls (1% each) declined.

The index for Chemicals & Chemical Products group declined by 0.3 percent to 153.6 (provisional) from 154.1 (provisional) for the previous month due to lower price of synthetic resin (3%), vitamins (2%) and organic manure, non-cyclic compound, basic organic chemicals, rubber chemicals and castor oil (1% each).  However, the price of dye & dye intermediates and distemper (2% each) moved up.

The index for Non-Metallic Mineral Products group rose by  0.8  percent to 170.8 (provisional) from 169.5 (provisional) for the previous month due to higher price of asbestos corrugated sheet (4%), white cement (3%), marbles and grey cement (1% each).  However, the price of slag cement (1%) declined.

The index for Basic Metals, Alloys & Metal Products group declined by 0.4 percent to 165.8 (provisional) from 166.4 (provisional) for the previous month due to lower price of gold & gold ornaments, zinc, silver and pencil  ingots (2% each) and wire rods, steel rods, billets, crc, pig iron and steel castings (1% each).  However, the price of furniture, sponge iron, ferro manganese, melting scrap and pressure cooker (1% each) moved up.

The index for Machinery & Machine Tools group rose by  0.1 percent to 134.6 (provisional) from 134.5 (provisional) for the previous month due to higher price of fibre optic cable (3%), ball/roller bearing and electric generators (2% each) and      textile machinery, machine tools, electric motors and control equipments (1% each).  However, the price of battery dry cells (11%), pump & assembly (3%) and boiler & accessories, communication equipments, insulators and conductor (1% each) declined.

The index for Transport, Equipment & Parts group rose by  0.1  percent to 136.1 (provisional) from 136.0 (provisional) for the previous month due to higher price of gauges (5%), geared motor (2%) and gear boxes & parts and suspension (1% each).  However, the price of trolleys/tanker, wheels & parts and wiper/blade/arm etc (1% each) declined.