The Hindu Business Line : Costlier foods drive inflation rate to 6-month high at 4.35%

New Delhi, Feb 22 The annual Wholesale Price Index-based inflation climbed to a six-month high of 4.35 per cent for the week ended February 9, higher than the previous week’s annual rise of 4.07 per cent. The Wholesale Price Index of all commodities increased to 218.1 points from 217.4 points a week ago.

Fruits dearer

The increase in the year-on-year inflation rate was primarily on account of higher food prices, with prices of fruit, vegetables, condiments and spices, as well as some manufactured items moving up during the latest reported week. Inflation was at 6.52 per cent during the corresponding week last year.

Among the major product groups, the Primary Articles’ group index rose 0.6 per cent as the Food Articles group index rose by 0.8 per cent due to higher prices of arhar and fruits and vegetables (3 per cent each), condiments and spices (2 per cent) and fish-marine, bajra and barley (1 per cent each).

However, the prices of jowar (1 per cent) declined.

The index for ‘Non-Food Articles’ group rose by 0.3 per cent due to higher prices of gingelly seed (9 per cent), groundnut seed (2 per cent) and cotton seed (1 per cent). However, the prices of sunflower (6 per cent) and raw wool (3 per cent) declined.

Brans costly

The Fuel, Power, Light and Lubricants’ group remained unchanged at its previous week’s level of 334.0 points.

The Manufactured Products group index rose by 0.4 per cent as the index for ‘Food Products’ group rose by 0.8 per cent due to higher prices of gingelly oil, oil cakes and bran (all kinds) (3 per cent each), rice bran oil, imported edible oil and khandsari (2 per cent each) and rape and mustard oil, groundnut oil, atta and sooji (rawa) (1 per cent each).

The index for ‘Textiles’ group declined by 0.1 per cent due to lower prices of hessian and sacking bags (3 per cent) and hessian cloth (1 per cent). However, the prices of other cotton yarn (1 per cent) moved up.

The index for ‘Rubber and Plastic Products’ group rose by 0.6 per cent for the previous week due to higher prices of cycle tubes (6 per cent), PVC fitting and accessories (3 per cent) and cycle tyres (2 per cent). The index for ’Chemicals and Chemical Products’ group rose by 0.7 per cent due to higher prices of methanol (25 per cent), acid (all kinds) (10 per cent), hair oil and calcium ammonium nitrate n-content (4 per cent each) and synthetic rubber (3 per cent).

However, the prices of caustic soda (sodium hydroxide) (1 per cent) declined.

The index for ‘Non-Metallic Mineral Products’ group rose by 0.6 per cent for the previous week due to higher prices of fire bricks (3 per cent) and cement (1 per cent).

The index for ‘Base Metals Alloys and Metal Products’ group rose marginally due to higher prices of lead ingots (2 per cent) and zinc ingots (1 per cent). The index for ‘Machinery and Machine Tools’ group rose by 0.1 per cent for the previous week due to higher prices of other pumps (5 per cent).

The final WPI for the week ended December 15 stood revised at 216.4 points, as compared to 215.6 points reported provisionally, while the annual rate of inflation based on final index, calculated on point to point basis, stood at 3.84 per cent as compared to 3.45 per cent points.

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