Project cost index eases in November

The project cost index, as measured by the consolidated ERIL Index of Cost of Project Inputs, eased nominally in November. Final estimates of WPI of project investment-related material inputs (available till September) have ruled higher than those provisionally assessed earlier. Project cost escalation on y-o-y basis worked out to 1.3 per cent during the month, against 1.2 per cent in the same period a year ago. WPI-based inflation for all commodities fell to zero per cent during the month, after over five years of positive growth. The combined WPI for manufactured products increased 2 per cent, even as the prices of primary articles and power & fuel declined by one per cent and 5 per cent respectively.

Computed by Economic Research India Pvt. Ltd, ERIL Index measures project cost escalation in terms of WPI of material inputs relevant in project construction.

Trends for November
The aggregate wholesale price index for non-metallic mineral products rose by 1 per cent during the month due to higher prices of lime and marbles (2 per cent each), and bricks and tiles, grey cement and glass bottles and bottle ware (1 per cent each). However, the price of white cement declined by 1 per cent.

The total WPI for basic metals, alloys and metal products declined by 0.5 per cent due to 6 per cent price reduction in silver; 3 per cent reduction each in rounds, gold and gold ornaments and billets; 2 per cent each in sponge iron, wire rods, HRC, CRC and pencil ingots; and 1 per cent each in angles, GP/GC sheets, rebars, joists and beams and pig iron. However, the price of steel castings escalated 4 per cent, nuts, bolts, screws and washers 3 per cent; iron and steel wire, pipes, tubes, rods, strips and aluminum 2 per cent each; and ferrosilicon, steel: pipes and tubes and steel structures 1 per cent each.

Even as the consolidated WPI for machinery and machine tools remained unchanged during the month, prices of fibre optic cables and oil mill machinery dropped 4.6 per cent and electric fans 3.2 per cent; and prices of harvesters, electrolytic condensers and electric motors increased 2.2-2.4 per cent.

The combined WPI for transport equipment and parts eased 0.1 per cent due to lower price of motorcycles, scooters and mopeds (1 per cent). However, the price of railway brake gears moved up 2 per cent and auto parts 1 per cent.