The Hindu Business Line : Cheaper non-food items keep inflation rate static

New Delhi, Oct 26 The annual wholesale price index-based inflation rose 3.07 per cent during the week ended October 13, matching the previous week’s annual rise. The year-on-year inflation rate was steady mainly on account of last year’s high base coming into play, even as all the three major group indices showed marginal increases during the latest reported week, Government data showed on Friday.

The WPI for ‘All Commodities’ (Base year 1993-94) for the latest reported week rose 0.1 per cent to 215 points, from 214.7 points for the previous week. The annual rate of inflation stood at 5.46 per cent during the corresponding week a year ago.

On a disaggregated basis, the Primary Articles group index rose by 0.2 per cent to 225.1 points, with the index for the Food Articles group rising 0.3 per cent due to higher prices of mutton (4 per cent), bajra (2 per cent) and fish-marine, barley, wheat, gram and eggs (1 per cent each).

Non-food articles

The index for ‘Non-food Articles’ group declined by 0.3 per cent due to lower prices of groundnut seed (3 per cent), gingelly seed and castor seed (2 per cent each) and raw cotton and copra (1 per cent each). However, the prices of raw jute (10 per cent), fodder (4 per cent), soyabean (3 per cent) and raw tobacco and skins (raw) (2 per cent each) moved up.

The Fuel, Power, Light and Lubricants group index rose by 0.4 per cent due to higher prices of naphtha (5 per cent) and furnace oil and bitumen (2 per cent each).

The Manufactured Products’ group index rose 0.1 per cent to 187.3 points, with the index for the Food Products Group declining by 0.1 per cent due to lower prices of atta (2 per cent) and oil cakes, maida and gingelly oil (1 per cent each).

However, the prices of bran (all kinds) (3 per cent), rice bran oil (2 per cent) and sooji (rawa) (1 per cent) moved up.

Textiles group

The Textiles group index declined by 0.3 per cent, mainly on account of a dip in prices of cotton yarn-hanks (1 per cent). The index for the Chemicals and Chemical Products’ group rose by 0.1 per cent due to higher prices of acid (all kinds) (2 per cent).

The index for ‘Non-Metallic Mineral Products’ group rose by 1.3 per cent due to higher prices of cement (2 per cent).

The Base Metals Alloys and Metal Products group index rose marginally due to an increase in prices of lead ingots (7 per cent). However, the prices of zinc ingots (1 per cent) declined. The index for Transport Equipment and Parts group rose by 0.1 per cent for the previous week due to higher prices of auto-rickshaws (3 per cent).

The final WPI for the week ended August 18 stood revised at 213.7 points, as compared to 213.6 points while the annual rate of inflation based on the final index, calculated on point to point basis, stood revised at 3.99 per cent, as compared to the provisional estimate of 3.94 per cent.

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