The Hindu Business Line : Costlier food, energy drive inflation to 2-year high

Costly & cheap
Prices up for epoxy resins (26%), aviation turbine fuel (5%)
Rates down for ayurvedic medicine liquids (14%), black tea leaf (5%)

New Delhi , Jan 19

The annual wholesale price index-based inflation rose 6.12 per cent during the week ended January 6, higher than the previous week's annual rise of 5.58 per cent. The rise in the year-on-year inflation was primarily on account of higher food and energy prices, Government data showed on Friday.

Vegetables dearer

The wholesale price index (base 1993-94), on which the inflation data is based, ended the latest reported week at 208.2 points. The index was at 208.1 points during the previous week. The annual inflation rate was 3.86 per cent during the corresponding week of the previous year.

On a disaggregated basis, the Primary Articles' group was up 0.3 per cent at 213.1 points in comparison to the previous week.

The Manufactured Products' group was down 0.1 per cent at 181.1 points while the Fuel, power light and lubricants' group was up 0.1 per cent at 322.3 points. Among the Primary Articles' group, food articles including fruits and vegetables, maize, arhar and wheat became dearer by one per cent each.

However, prices of moong, condiments and spices declined by two per cent each, while prices of fish-marine, urad, barley, bajra, gram and jowar decreased by one per cent each. In the non-food category, prices of groundnut seed and raw rubber moved up by three per cent and two per cent respectively, while cottonseed, rape and mustard seed prices increased one per each. In the Fuel, power, lights and lubricants' group, aviation turbine fuel prices rose by five per cent, while prices of furnace oil and naphtha were up two and one per cent, though bitumen prices witnessed a decline of two per cent.

Black tea leaf down

Among the Manufactured Products' group, prices of unblended black tea leaf dipped by five per cent and rice bran oil, khandsari and gur became cheaper by two per cent each.

Sugar, coconut oil and imported oil prices fell by one per cent each. However, prices of groundnut oil and gingelly oil moved up four and two per cent respectively.

Steel rises

Iron steel prices moved up two per cent, while foundry pig iron, basic pig iron, bars & rounds and steel sheets, plates & strips became dearer by one per cent each.

However, prices declined for nylon filament yarn (three per cent), tyre cord fabric, hessian and sacking bags, cotton yarn-hanks (one per cent each) and ayurvedic medicine liquids (14 per cent).

The Government has also revised inflation higher to 5.39 per cent for the week ended November 11 from the provisional estimate of 5.29 per cent.

This follows revision in wholesale price index to 209.1 points against 208.9 points, estimated earlier.