The Hindu Business Line : Inflation rate drops on cheaper food, vegetables

New Delhi, Dec. 7 The annual Wholesale Price Index-based inflation rose 3.01 per cent for the week ended November 24, lower than the previous week’s annual rise of 3.21 per cent.

Fruits, vegetables lower

The dip in the year-on-year inflation rate was mainly on account of food items, particularly vegetables, turning cheaper. The official WPI for “All Commodities” for the latest reported week declined by 0.1 per cent to 215.4 points, from 215.7 points for the previous week, according to data released by the Ministry of Commerce and Industry.

Inflation was recorded at 5.55 per cent during the corresponding week last year.

On a disaggregated basis, the Primary Articles’ group declined by 0.7 per cent as the index for ‘Food Articles’ group declined by 1.1 per cent due to lower prices of fruits and vegetables (5 per cent), condiments and spices (2 per cent) and jowar, arhar, bajra, fish-marine and urad (1 per cent each).

The index for “Non-Food Articles” group rose by 0.2 per cent due to higher prices of gingelly seed, groundnut seed, cotton seed and raw jute (1 per cent each). However, the prices of castor seed (1 per cent) declined.

The Fuel, Power, Light and Lubricants’ group remained unchanged at its previous week’s level of 326.1 points. The Manufactured Products’ group rose by 0.1 per cent as the index for ‘Food Products’ group rose by 0.2 per cent due to higher prices of bran (all kinds) (7 per cent), rice bran oil (4 per cent), khandsari (2 per cent) and sooji (rawa) and gingelly oil (1 per cent each).

Sunflower oil dips

However, the prices of sunflower oil, gur and groundnut oil (1 per cent each) declined.

The index for “Textiles” group rose by 0.1 per cent due to higher prices of hessian and sacking bags (2 per cent) and viscose filament yarn (1 per cent). However, the prices of other cotton yarn (1 per cent) declined. The index for ‘Paper and Paper Products’ group declined by 0.1 per cent due to marginal fall in the prices of printing paper white. The index for ‘Chemicals and Chemical Products’ group rose by 0.2 per cent due to higher prices of BOPP film (8 per cent) and ammonium sulphate (5 per cent).

Zinc cheaper

The index for ‘Base Metals Alloys and Metal Products’ group declined by 0.1 per cent due to lower prices of lead ingots (10 per cent) and zinc ingots (6 per cent).

The final WPI for the week ended September 29 stood revised at 215.3 points, as compared to the provisional estimate of 215.1 points, and annual rate of inflation based on final index, calculated on point to point basis, stood revised at 3.36 per cent, as compared to the provisional 3.26 per cent.