The Hindu Business Line : Costlier food drives up inflation rate to 12.63%

New Delhi, Aug. 21 The annual Wholesale Price Index-based inflation rose 12.63 per cent during the week ended August 9, above the previous week’s year-on-year rise of 12.44 per cent, Government data showed on Thursday.

The official WPI for ‘All Commodities’ for the week ended August 9 rose to 240.7 points, up from 240.4 points for the previous week.

The annual inflation rate was recorded at 4.24 per cent during the corresponding week of the previous year.

On a disaggregated basis, during the latest reported week, the index for the Primary Articles group rose marginally as the Food Articles’ group index rose by 0.3 per cent due to higher prices of masur (3 per cent), tea, moong and gram (2 per cent each) and milk (1 per cent). However, the prices of urad, fish-marine and arhar (1 per cent each) declined.

Non-food articles

The index for ‘Non-Food Articles’ group declined by 0.6 per cent due to lower prices of sunflower (8 per cent), niger seed (6 per cent), raw rubber (2 per cent) and copra and raw cotton (1 per cent each).

However, the prices of rape and mustard seed (1 per cent) moved up.

The Fuel, Power, Light and Lubricants group index remained unchanged at its previous week’s level of 380.4 points.

Manufactured products

The Manufactured Products’ group index rose by 0.2 per cent as the index for ‘Food Products’ group rose by 0.1 per cent due to higher prices of khandsari and rape and mustard oil (1 per cent each).

However, the prices of imported edible oil (6 per cent), rice bran oil (5 per cent), sunflower oil (2 per cent) and gingelly oil (1 per cent) declined. The index for the ‘Textiles’ group rose by 1.6 per cent due to higher prices of cotton yarn-cones (8 per cent), polyester staple fibre (7 per cent), mixed fabrics and cotton grey cloth and canvas (6 per cent each), other cotton yarn (5 per cent) and hessian and sacking bags (1 per cent).

However, the prices of texturised yarn (5 per cent) and cotton yarn-hanks and synthetic yarn (1 per cent each) declined.

Paper products

The index for ‘Paper and Paper Products’ group rose by 0.1 per cent due to higher prices of kraft paper (1 per cent).

The index for ‘Rubber and Plastic Products’ group rose by 0.2 per cent due to higher prices of P.V.C fitting and accessories (13 per cent).

The index for ‘Chemicals and Chemical Products’ group declined by 0.1 per cent for the previous week due to lower prices of purified terephthalic acid (4 per cent), benzene (3 per cent) and P.V.C resins (2 per cent).

The index for ‘Non-Metallic Mineral Products’ group rose by 0.3 per cent due to higher prices of cement (1 per cent).

The index for the ‘Base Metals, Alloys and Metal Products’ group declined marginally week due to lower prices of lead ingots (4 per cent) and zinc ingots (3 per cent).

For the week ended July 14, the final WPI stood revised at 236.9 points as compared to 236.1 points while the annual rate of inflation based on final index, calculated on point to point basis, stood revised at 11.80 per cent as compared to the provisional estimate of 11.42 per cent.

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