Inflation rate dips to 0.13%; food still dearer
The Hindu Business Line, June 12, 2009, Page 7
Wholesale Price Index of all commodities at 232.6.
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The sub-one per cent overall inflation numbers, however, hide the much higher price increases registered in foodstuffs.
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Our Bureau, New Delhi
The annual wholesale price index (WPI)-based inflation rate has further slipped from 0.48 to 0.13 per cent for the week ended May 30.
That makes it the thirteenth consecutive week where year-on-year inflation has ruled below the 1 per cent level. The all-commodities WPI (base 1993-94=100) was provisionally placed at 232.6 for the latest recorded week, as against 232.3 a year ago.
The coming week (i.e. ended June 6) could well see the headline inflation rate turning negative — the first time in over two decades. The reason for this is that the WPI last year, between May 31 and June 7, shot up from 232.3 to 236.5. The ‘base effect’ of this 1.8 per cent rise in a single week is likely to produce a negative inflation rate, when the June 6-ended WPI data is released.
The sub-one per cent overall inflation numbers, however, hide the much higher price increases registered in foodstuffs. Thus, while the all-commodities annual inflation for the latest recorded week was 0.13 per cent, the corresponding rate for the ‘primary articles’ group stood at 5.7 per cent. And within ‘primary articles’, the year-on-year price rise was 8.6 per cent for ‘food articles’ — which included foodgrains, fruits & vegetables and milk.
The significant reduction in headline inflation over recent weeks has been mainly brought about by the ‘fuel, power, light and lubricants’ and ‘manufactured products’ groups, which have respective weights of 14.23 per cent and 63.75 per cent in the all-commodities WPI, compared to 22.02 per cent for ‘primary articles’.
For the week ended May 30, the WPI for the fuel group actually fell 6.68 per cent year-on-year, while inching up by 0.39 per cent for manufactured products. But within manufactured products again, the inflation in ‘food products’ was 12.36 per cent. The latter included a disconcerting 31.27 per cent for sugar.
The Hindu Business Line, June 12, 2009, Page 7
Wholesale Price Index of all commodities at 232.6.
--------------------------------------------------------------------------------
The sub-one per cent overall inflation numbers, however, hide the much higher price increases registered in foodstuffs.
--------------------------------------------------------------------------------
Our Bureau, New Delhi
The annual wholesale price index (WPI)-based inflation rate has further slipped from 0.48 to 0.13 per cent for the week ended May 30.
That makes it the thirteenth consecutive week where year-on-year inflation has ruled below the 1 per cent level. The all-commodities WPI (base 1993-94=100) was provisionally placed at 232.6 for the latest recorded week, as against 232.3 a year ago.
The coming week (i.e. ended June 6) could well see the headline inflation rate turning negative — the first time in over two decades. The reason for this is that the WPI last year, between May 31 and June 7, shot up from 232.3 to 236.5. The ‘base effect’ of this 1.8 per cent rise in a single week is likely to produce a negative inflation rate, when the June 6-ended WPI data is released.
The sub-one per cent overall inflation numbers, however, hide the much higher price increases registered in foodstuffs. Thus, while the all-commodities annual inflation for the latest recorded week was 0.13 per cent, the corresponding rate for the ‘primary articles’ group stood at 5.7 per cent. And within ‘primary articles’, the year-on-year price rise was 8.6 per cent for ‘food articles’ — which included foodgrains, fruits & vegetables and milk.
The significant reduction in headline inflation over recent weeks has been mainly brought about by the ‘fuel, power, light and lubricants’ and ‘manufactured products’ groups, which have respective weights of 14.23 per cent and 63.75 per cent in the all-commodities WPI, compared to 22.02 per cent for ‘primary articles’.
For the week ended May 30, the WPI for the fuel group actually fell 6.68 per cent year-on-year, while inching up by 0.39 per cent for manufactured products. But within manufactured products again, the inflation in ‘food products’ was 12.36 per cent. The latter included a disconcerting 31.27 per cent for sugar.
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