Coal news and updates

WPI improves to -1.99% in Nov, mineral index dips

India Coal Market Watch

December 14: Deflationary pressure eased further with the inflation rate moving up to -1.99% in November 2015 compare to -3.81% in October 2015. The Wholesale Price Index (WPI)-based inflation was -4.54% in September. Hence, the trend indicated an improvement. The WPI was 0.17% during the corresponding month of the previous year. Here it can be mentioned that, WPI has been in negative territory for 13 months in a row. 

The index for “Food Articles” group rose by 2.3% to 271.0 in November 2015 from 264.9 compared to the previous month due to higher prices of fish-inland (9%), urad, egg and moong (6%). The non-food items rose by 0.5% to 221.7 in the current month from 220.7 in the previous month due to higher prices of niger seeds and flowers (10% each), raw jute (8%), rape & mustard seed and raw wool (5% each).

Inflation for fuel and power, which is a major factor of production in the manufacturing sector, increased 0.9%. The basic metals and non-metallic minerals decreased by 1.2% and 0.7% respectively.

The index for the “Minerals”  group declined by 2.2% to 217.6 in November from 222.5 in October due to lower price of iron ore (10%), zinc concentrate (6%) and chromite, phosphorite and sillimanite (1% each). However, the price of crude petroleum (1%) moved up.