The Hindu Business Line : Inflation dips on cheaper primary, food articles

THE annual wholesale price index-based inflation rate dipped marginally to 7.38 per cent for the week ended September 25, mainly due to a dip in prices of food items and other primary articles, according to data released by the Ministry of Commerce and Industry on Friday.

During the latest reported week, the year-on-year inflation rate fell from the previous week's level of 7.80 per cent, even as manufactured items and fuel prices stood firm.

The index of Primary Articles' group was down substantially by 0.6 per cent to 191.5 points due to cheaper food and non-food articles, according to the data.

Despite rising oil prices in international markets, the Fuel, Power, Light and Lubricants' group index was constant at 281.6 points during the latest reported week and the `heavy-weight' index of Manufactured Products' group also stayed unchanged at 167.6 points, with cheaper food products, textiles and rubber balancing out the chemicals, machinery and transport parts turning costlier.

Among the Primary Articles' group, the Food Articles' group index fell by 0.4 per cent to 188.1 points due to lower prices of fish-marine (four per cent), fruits and vegetables, moong, condiments and spices, maize, bajra and mutton (one per cent each).

Prices, however, rose for poultry chicken (five per cent), tea and masur (two per cent each), and ragi and barley (one per cent each).

The index for Non-Food Articles' group was down by 1.1 per cent to 193.6 points due to a fall in prices of raw cotton (five per cent), niger seed and sunflower (four per cent each), groundnut seed, safflower and cotton seed (one per cent each). But prices increased for gingelly seed (three per cent, copra, castor seed and soyabean (two per cent each).

Among the Manufactured Articles', the Food Products' group index declined by 0.1 per cent to 179.7 points due to lower prices of rice bran oil (four per cent), ghee (two per cent) and khandsari, gur, atta (one per cent each). But, prices rose for salt (two per cent), hydrogenated vanaspati, coffee powder and maida (one per cent).

A five per cent dip in the prices of texturised yarn pushed down the index for Textiles group by 0.2 per cent to 137.9 points. The index for Rubber and Plastic Products' group fell by 1.5 per cent to 133.9 points owing to cheaper cycle tubes (17 per cent) and cycle tyres (four per cent).

A 19 per cent increase in prices of polystyrene propped up Chemicals and Chemical Products' group index by 0.2 per cent to 181.9 points. A marginal decline in cement prices pushed down Non-Metallic Mineral Products group index by 0.1 per cent to 156.4 points.

Machinery and Machine Tools' group index was up by 0.1 per cent to 139.4 points due 8 per cent hike in the prices of electric motors. The index of Transport Equipment and Parts group rose by 0.1 per cent to 154.6 points owing to higher prices of 2/3 wheeler parts and scooters (one per cent each).

The Government also revised upwards inflation to 8.02 per cent for the week ended July 31 as compared to the provisional level of 7.61 per cent. The WPI stood corrected at 187.3 points during the last week of July as against provisional level of 186.6 points.