The Hindu Business Line : Wholesale prices fall 0.95%; food still costly

The Primary Articles group index rose by 2.1 per cent as the index for ‘Food Articles’ group surged 3.2 per cent due to higher inflation levels in some items.

Our Bureau

New Delhi, Aug. 26 The annual Wholesale Price Index-based inflation fell 0.95 per cent during the week ended August 15 compared with the 1.53 per cent slide recorded in the previous week, the Ministry of Commerce and Industry said here on Wednesday. During the corresponding week of the previous year, it was 12.82 per cent.

The official WPI for ‘All Commodities’ for the latest reported week rose 0.6 per cent to 238.8 points from 237.4 points for the previous week.

Milk, egg prices up

On a disaggregated basis, the Primary Articles group index rose 2.1 per cent as the index for ‘Food Articles’ group surged 3.2 per cent due to higher inflation levels in items including fish-inland (25 per cent), eggs (10 per cent), masur (8 per cent), milk and moong (5 per cent each), condiments and spices (4 per cent), fruits and vegetables and jowar (3 per cent), mutton and arhar (2 per cent each) and urad and maize (1 per cent each).

However, the prices of fish-marine (9 per cent) declined.

The index for ‘Non-Food Articles’ group declined by 0.5 per cent due to lower inflation in case of groundnut seed (3 per cent).

However, the prices of castor seed (2 per cent) and raw rubber, raw silk, rape and mustard seed and cotton seed (1 per cent each) moved up.

Sugar rises

The Fuel and Power index remained unchanged at its previous week’s level of 338.2 points.

The manufactured Products group index increased 0.1 per cent as the index for ‘Food Products’ group rose by 0.7 per cent due to higher prices of sugar and khandsari (2 per cent each) and cotton seed oil (1 per cent).

However, the prices of gur and salt (1 per cent each) declined.

The index for ‘Textiles’ group declined 0.1 per cent due to lower prices of hessian cloth and hessian and sack bags (2 per cent each) and texturised yarn (1 per cent).

The index for ‘Chemicals and Chemical Products’ group rose 0.2 per cent due to higher prices of epoxy resins (72 per cent) and acid (all kinds) (1 per cent).

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

The index for ‘Base Metals Alloys and Metal Products’ group increased marginally due to higher prices of steel ingots (plain carbon) and zinc ingots (1 per cent each).

The index for ‘Machinery and Machine Tools’ group dropped 0.1 per cent due to lower prices of hydraulic machine (2 per cent).

For the week ended June 20, the final WPI for ‘All Commodities’ stood at 235.8 points compared to the provisional estimate of 234.6 points and the annual rate of inflation based on final index, calculated on point to point basis, stood at -0.80 per cent as against -1.30 per cent points.

Related Stories:
Inflation declines 1.58%
RBI sees more pressure on food prices as drought looms
The inflation paradox