The Hindu Business Line : Cheaper food items keep inflation rate on leash

Up & down
Fuel group index up on higher furnace oil
Textiles group index up on viscose stable fibre
Fall in prices of zinc (10%), aluminium ingots (6%)

Our Bureau

New Delhi, Sept 28 The annual Wholesale Price Index-based inflation rose 3.23 per cent during the week ended September 15, lower than previous week’s annual rise of 3.32 per cent. The dip in the year-on-year inflation rate to its lowest levels since December 21, 2002, was mainly on account of a fall in prices of food items such as fruits, sugar, egg, fish meat and a few manufactured items, besides the effect of last year’s high base, Government data showed on Friday.

This is the fifth straight week that inflation has been below four per cent and the 15th week it has been under 5 per cent, the RBI’s target for the current fiscal. The annual rate of inflation stood at 5.27 per cent during the corresponding week a year ago.

During the latest reported week, the WPI for ‘All Commodities’ declined 0.1 per cent to 214.4 points, from 214.7 points for the previous week.

Moong, urad down

On a disaggregated basis, the Primary Articles’ group index eased further with the index for the ‘Food Articles’ group falling by 1.1 per cent to 225.7 points due to lower prices of fish-marine and fish-inland (11 per cent each), eggs (5 per cent), fruits and vegetables (2 per cent) and moong, urad and maize (1 per cent each). However, the prices of poultry chicken (5 per cent), mutton (2 per cent) and masur (1 per cent) moved up.

The index for ‘Non-Food Articles’ group rose by 0.4 per cent to 211.4 points due to higher prices of gingelly seed (4 per cent) and raw cotton, soyabean, raw tobacco and rape and mustard seed (1 per cent each). However, the prices of copra (3 per cent) and castor seed, fodder and raw rubber (1 per cent each) declined. The Fuel, Power Light and Lubricants group index rose marginally due to higher prices of furnace oil (2 per cent).

Oil prices higher

The heavyweight Manufactured Products’ group remained unchanged at its previous week’s level of 186.2 points. The index for ‘Food Products’ group rose 0.1 per cent due to higher prices of cotton seed oil (4 per cent) and rape and mustard oil (2 per cent). However, the prices of coconut oil (4 per cent) declined.

The index for ‘Textiles’ group rose by 0.3 per cent due to higher prices of viscose staple fibre (3 per cent). However, the prices of tyre cord fabric (3 per cent) declined. The index for ‘Paper and Paper Products’ group rose by 0.1 per cent due to higher prices of map litho paper (1 per cent). However, the prices of pulp (2 per cent) declined.

metals down

The index for ‘Non-Metallic Mineral Products’ group rose by 0.1 per cent to 206.8 points from 206.5 points for the previous week due to higher prices of cement (0.2 per cent). However, the prices of asbestos cement corrugated sheets (1 per cent) declined.

The index for ‘BaseMetals Alloys and Metal Products’ group declined by 0.4 per cent due to lower prices of zinc (10 per cent), aluminium ingots (6 per cent), barrels (5 per cent), other aluminium material and aluminium extrusion (4 per cent each) and zinc ingots and aluminium rolled products (3 per cent each).

However, the prices of steel furniture (14 per cent) and tin boxes (3 per cent) moved up. The index for ‘Machinery & Machine Tools’ group rose by 0.1 per cent due to higher prices of hydraulic pumps (3 per cent).

For the week ended July 21, the final WPI stood revised to 213.7 points, compared to the provisional estimate of 213.1 points, while the annual rate of inflation based on final index, calculated on point to point basis, stood revised at 4.65 per cent compared to 4.36 per cent points estimated provisionally.

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