The Hindu Business Line : Inflation drops on cheaper textile products

THE growth in the annual wholesale price index-based inflation dropped marginally to 5.55 per cent during the week ended May 14, from 5.61 per cent in the previous week.

The year-on-year inflation fell despite food and fuel products turning costlier during the latest reported week, according to data released by the Ministry of Commerce and Industry hereon Friday.

The WPI rose by 0.1 per cent to 192.1 points, even as heavy weighted manufactured products' prices remained unchanged. The index stood at 182 points during the corresponding period a year ago.

The index of primary articles' group was up by 0.3 per cent to 188.9 points due to costlier food, non-food and minerals items. The fuel, power, light and lubricants' group index was up marginally to 293.3 points due to a small increase in the price of furnace oil.

The index of manufactured products' group stood firm at the previous week's level of 170.6 points, despite costlier food products, machinery and transport equipment.

On a disaggregated basis, in case of the primary articles' group, the food articles' group index rose by 0.4 per cent to 190.9 points due to higher prices of beef and buffalo meat (13 per cent), poultry chicken (eight per cent), masur (six per cent), eggs (three per cent), fish-marine and pork (two per cent each) and jowar, condiments and spices, moong, maize and bajra (one per cent each).

However, tea (eight per cent) and ragi (one per cent) process registered a drop.

The index of non-food articles' group rose by 0.1 per cent to 179.3 points due to higher prices for raw silk (four per cent), sunflower and safflower (two per cent each) and niger seed, gingelly seed and raw cotton (one per cent each).

But prices of fodder (10 per cent), linseed (two per cent) and soyabean (one per cent) showed a decline.

The minerals' group index rose by over one per cent to 249.1 points owing to costlier felspar (49 per cent), magnesite (13 per cent), barytes (11 per cent), and iron ore (two per cent).

Among the manufactured products' group, the food products' group index was up by 0.1 per cent to 174 points owing to higher prices of gur (three per cent) and ghee, salt and oil cakes (one per cent each).

But prices declined for coconut oil (five per cent) and rice bran oil (one per cent).

A five per cent dip in the prices of hessian and sacking bags pushed down the textiles' group index by 0.2 per cent to 131.6 points.

A marginal decline in cement prices led to a 0.1 per cent decline in the non-metallic mineral products group index to 168.1 points.

The index for base metals and metal products group fell by 0.2 per cent to 221.9 points due to lower prices of other iron steel (five per cent), MS bars and rounds (three per cent), and steel sheets, plates and strips, and zinc.

The machinery and machine tools' group index was up by 0.1 per cent to 145.1 points due to higher prices of computer and computer-based systems (10 per cent). However, prices fell for batteries (four per cent) and enamelled copper wires (two per cent).

A three per cent increase in the prices of motorcycle parts pushed up the transport equipment and parts group index by 0.1 per cent to 158.9 points.

The Government revised upwards inflation to 5.45 per cent during the week ended March 19 as compared to the provisional estimate of 5.11 per cent.

The WPI stood corrected at 189.7 points during the second week of March against provisional level of 189.1 points.

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