India Inflation Slows to 6.62 Percent in January of 2013


The annual rate of inflation, based on monthly WPI, stood at 6.62% for the month of January of 2013 (over January of 2012) as compared to 7.18% for the previous month and 7.23% during the corresponding month of the previous year. Build up inflation in the financial year so far was 5.09% compared to a build up of 6.15% in the corresponding period of the previous year.

The index for primary articles rose by 0.6 percent to 221.4 (Provisional) from 220.0 (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 0.8 percent to 213.8 (Provisional) from 212.2 (Provisional) for the previous month due to higher price of poultry chicken (21%), condiments & spices and bajra (4% each), maize (3 %), egg, fish-marine and fish-inland (2% each) and moong, jowar, mutton and urad (1% each).  However, the price of gram (3%), coffee (2%) and arhar, ragi and tea (1% each) declined.

The index for `Non-Food Articles` group declined by 0.3 percent to 202.3 (Provisional) from 202.9 (Provisional) for the previous month due to lower price of flowers (14%), cotton seed (3%), rape & mustard seed and fodder (2% each) and raw cotton and linseed (1% each).  However, the price of gingelly seed (16%), niger seed (6%), copra and raw jute (5% each), castor seed (4%), groundnut seed (2%) and raw silk and logs & timber (1% each) moved up.

The index for `Minerals` group rose by 1.8 percent to 347.0 (Provisional) from 340.8 (Provisional) for the previous month due to higher price of barytes (47%), sillimanite (19%), iron ore (4%) and crude petroleum (1%).  However, the price of zinc concentrate (7%), magnesite (3%) and copper ore (1%) declined.

The index for this fuel and power rose by 0.3 percent to 189.5 (Provisional) from 188.9 (Provisional) for the previous month due to higher price of bitumen (6%), light diesel oil and furnace oil (1% each). However, the price of aviation turbine fuel (1%) declined.
 
The index for manufactured products rose by 0.2 percent to 148.3 (Provisional) from 148.0 (Provisional) for the previous month. The groups and items for which the index showed the largest variations during the month are as follows:
 
The index for `Wood & Wood Products` group rose by 1.2 percent to 174.4 (Provisional) from 172.3 (Provisional) for the previous month due to higher price of plywood & fibre board (2%).
 
The index for `Textiles` group rose by 0.9 percent to 133.4 (Provisional) from 132.2 (Provisional) for the previous month due to higher price of man made fibre, man made fabric and woollen textiles (2% each) and jute sacking cloth (1%).  However, the price of gunny and hessian cloth (2%) and tyre cord fabric (1%) declined.
 
The index for `Food Products` group declined by 0.7 percent to 165.9 (Provisional) from 167.1 (Provisional) for the previous month due to lower price of gur (5%), sugar and palm oil (3% each), cotton seed oil, oil cakes,     khandsari and gola (cattle feed) (2% each) and sooji (rawa), tea dust (unblended) and tea leaf (blended) (1% each).  However, the price of coffee powder (14%), gingelly oil (5%), wheat flour (atta) (3%) and canned fish and bakery products (1% each) moved up.

Ministry of Commerce & Industry | Nuno Salva | nuno.salva@tradingeconomics.com
2/14/2013 9:17:25 AM