The Hindu Business Line : Inflation remains in negative territory

Inflation continues to be in the negative territory at -1.21 per cent for the week ended July 4 as compared with -1.55 per cent for the previous week ended June 27. In the corresponding week of 2008, inflation had stood at 12.19 per cent.

The Wholesale Price Index, however, rose by 0.7 per cent for the same period to 236.4 from 234.7 in the previous week.

The minor increase in inflation rate is because of the recent hike in fuel prices. The prices of petrol and diesel were raised by Rs 4 and Rs 2 from July 1. Moreover, naphtha prices rose by 15 per cent, furnace oil by 11 per cent, besides a 2 per cent rise in the price of bitumen.

The index for primary articles remained unchanged at the previous week’s level of 258.5. Prices of food articles declined 0.2 per cent, due to lower prices of seafood, fruits and vegetables. Prices for non-food articles rose by 0.3 per cent to 237.7. This was mainly due to higher prices of gingelly seeds and cotton seeds.

Manufactured products, which account for a major share in the inflation index, rose 0.2 per cent to 206.1 from 205.7 in the previous week. Manufactured food products, rubber and plastic products both rose by 0.5 per cent, while tobacco and tobacco products rose by 0.9 per cent.

They were followed by transport equipment, which rose by 0.3 per cent and chemicals and paper products, which rose by 0.1 per cent and 0.05 per cent respectively.

Related Stories:
Asset prices: More deficit sensitive than traditional inflation?
Inflation rate stays negative; food still costly