The Hindu Business Line : Inflation declines on cheaper fuel products

THE annual wholesale price index-based inflation rate dipped marginally to 7.2 per cent for the week ended October 2 from the previous week's level of 7.38 per cent, on fall in the prices of fuel products and some manufactured items.

The year-on-year inflation rate declined as fuel prices fell marginally by 0.2 per cent, despite international crude oil prices crossing the $50-a-barrel-mark, according to data released by the Ministry of Commerce and Industry on Friday.

The index of Primary Articles' group was up by 0.1 per cent to 191.6 points due to food items turning costlier. The Fuel, Power, Light and Lubricants' group index fell marginally by 0.2 per cent to 281 points due to cheaper furnace oil (four per cent), lubricants (three per cent) and naphtha (one per cent). The index of Manufactured Products' group stood unchanged at the previous week's level of 167.6 points despite cheaper food items, paper and transport equipment.

Among the Primary Articles' group, the Food Articles' group index rose substantially by 0.6 per cent to 189.3 points due to rise in the prices of vegetables (14 per cent), barley (four per cent), urad (three per cent) and eggs (one per cent). Prices, however, declined for fish-marine (seven per cent), fish-inland (four per cent) and masur, moong and maize (one per cent each).

The index of Non-Food Articles' group plummeted by 1.4 per cent to 190.9 points due to lower prices of sunflower (12 per cent), raw cotton and gingelly seed (three per cent each) and groundnut seed and castor seed (two per cent each). But prices rose in the case of raw rubber (four per cent), safflower (two per cent) and tobacco, fodder and niger seed (one per cent each).

Among the Manufactured Products, the Food Products' group index declined by 0.3 per cent to 179.2 points due to lower prices of rice bran oil (four per cent), imported edible oil (two per cent) and groundnut oil, solvent extracted groundnut oil and coconut oil (one per cent each), even as gingelly oil became costlier by three per cent.

The index for Textiles group rose by 0.1 per cent to 138 points due to costlier synthetic cloth (three per cent), dhotis and sarees and cotton grey drills and jeans (two per cent each).

A two per cent fall in the prices of newspaper pushed down Paper and Paper Products' group index by 0.2 per cent to 173.4 points. A one per cent rise in the prices of decorative laminates pushed up Rubber and Plastic Products' group index by 0.1 per cent to 134 points.

The Chemicals and Chemical Products' group index was up by 0.1 per cent to 182.1 points owing to costlier synthetic rubber (14 per cent), purified terephthalic acid (three per cent) and hair oil (one per cent).

The Base Metals, Alloys and Metal Products' group index rose by 0.1 per cent to 205.2 points, while the index of Machinery and Machine Tools group was up by 0.2 per cent to 139.7 points. However, the prices moved up for two-three-wheeler parts/components (four per cent) and auto-rickshaws (two per cent).

The Government also revised upwards inflation to 8.3 per cent for the week ended August 7, compared to the provisional level of 7.96 per cent. The WPI stood corrected at 187.8 points during the first week of August as against the provisional level of 187.2 points.