Inflation rate falls for 7th straight week to 1.54%

Inflation rate falls for 7th straight week to 1.54%
The Hindu Business Line, July 31, 2009, Page 10

Wholesale Price Index of all commodities at 236.8.

Our Bureau, New Delhi

The annual Wholesale Price Index fell for a seventh straight week, declining 1.54 per cent in the week to July 18 after falling 1.17 per cent on a year-on-year basis in the previous week, the Government said on Thursday.

Inflation was recorded at 12.54 per cent during the corresponding week of the previous year. The official WPI for ‘All Commodities’ for the latest reported week rose by 0.04 per cent to 236.8 points from 236.7 points for the previous week.

Primary articles

On a disaggregated basis, the Primary Articles group index rose by 0.3 per cent as the index for the ‘Food Articles’ group rose by 1.2 per cent due to higher inflation in case of mutton (14 per cent), arhar (9 per cent), gram (4 per cent), moong, jowar, fruits and vegetables, and masur (3 per cent each), bajra and urad (2 per cent each) and maize and ragi (1 per cent each). However, the prices of condiments and spices (1 per cent) declined.

Non-food articles

The index for ‘Non-Food Articles’ group rose by 1.7 per cent due to higher prices of logs and timber (35 per cent), copra (3 per cent), raw silk (2 per cent) and rape and mustard seed, raw cotton and gingelly seed (1 per cent each). However, the prices of sunflower (1 per cent) declined.

Minerals

The index for ‘Minerals’ group declined by 16.8 per cent due to lower prices of iron ore (24 per cent) and felspar (3 per cent). However, the prices of vermiculite (86 per cent), manganese ore (77 per cent), silica sand (4 per cent) and barytes (2 per cent) moved up.

Fuel and power

The Fuel and Power group index declined by 0.1 per cent due to lower prices of aviation turbine fuel (7 per cent).

Manufactured products

The Manufactured Products group index declined by 0.1 per cent as the index for ‘Food Products’ group declined by 0.4 per cent due to lower prices of oil cakes (3 per cent) and cottonseed oil (1 per cent). However, the prices of imported edible oil (4 per cent) and rice bran oil, coconut oil, sugar, butter, ghee and gur (1 per cent each) moved up.

Beverages, tobacco…

The index for ‘Beverages Tobacco and Tobacco Products’ group rose marginally due to higher prices of soft drinks (all kinds) (1 per cent). The index for ‘Textiles’ group declined by 0.2 per cent due to lower prices of hessian cloth (3 per cent) and hessian and sacking bags (2 per cent).

Chemicals and products

The index for ‘Chemicals and Chemical Products’ group rose marginally due to higher prices of acid (all kinds) (1 per cent). The index for ‘Non-Metallic Mineral Products’ group declined by 0.1 per cent due to marginal fall in cement prices.

Basic metals…

The index for ‘Base Metals Alloys and Metal Products’ group rose marginally due to higher prices of foundry pig iron and basic pig iron (1 per cent each). However, the prices of other iron steel, steel ingots and lead ingots (1 per cent each) declined.

For the week ended May 23, the final WPI for ‘All Commodities’ stood at 234.3 points compared with the provisional estimate of 232.3 points and the annual rate of inflation based on final index, calculated on point-to-point basis, stood at 1.34 per cent compared with 0.48 per cent.