The Hindu Business Line : Drop in minerals prices pulls down inflation

THE annual wholesale price index-based inflation was at 3.13 per cent during the week ended August 13 as compared to the corresponding week last year.

The growth in the year-on-year inflation was lower than the previous week's 3.35 per cent, mainly due to fall in prices of oilseeds, minerals and manufactured products, according to data released here on Friday by the Ministry of Commerce and Industry.

During the latest reported week, the wholesale price index (WPI) remained unchanged at previous week's level of 194.1 points. The index stood at 188.2 points during the corresponding week last year. The inflation rate grew 8.29 per cent during the corresponding period a year ago.

On a disaggregated basis, the Primary Articles' group index rose 0.2 per cent to 191.3 points due to an increase in the prices of food articles, even as non-food items became cheaper.

The fuel, power, light and lubricants group index stood firm at the previous week's levels of 303.9 points while the manufactured products group index fell by 0.1 per cent to 170.5 points as food, chemicals and basic metals prices fell.

Among the Primary Articles' group, the Food Article's group index was up 0.7 per cent to 192.5 points due to higher prices of vegetables (3.3 per cent), fruits, and jowar (2 per cent each). But prices declined for moong (4 per cent), barley and wheat (1 per cent each). The index for Non-Food Articles' group index fell by 0.2 per cent to 182.2 points due to cheaper raw rubber (7 per cent), safflower and niger seed (3 per cent each), soyabean (2 per cent) and castor seed (1 per cent). However, prices rose for raw silk (4 per cent) and cottonseed, groundnut seed, gingelly seed and rape and mustard seed (1 per cent each).

The Minerals group index was down 8.5 per cent to 266.4 points due to fall in prices of chromite (54 per cent), bauxite (44 per cent), iron ore (7 per cent), china clay (5 per cent) and fluorite (2 per cent). But prices rose for fire clay (14 per cent), vermiculite (12 per cent), steatite (4 per cent) and magnesite (1 per cent).

Among the Manufactured Products' group, the Food Products' group index fell by 0.1 per cent to 176.6 points due to one per cent dip in the prices of rice bran oil and oil cakes. But prices moved up for gur (2 per cent) and coconut oil, salt and gingelly oil (1 per cent each).

A one per cent increase in the prices of polyester staple fibre, hessian cloth and nylon filament yarn pushed up the index for Textiles' group by 0.2 per cent to 128.4 points.

The index for chemicals and Chemical Products' group fell 0.1 per cent to 186.2 points owing to lower prices of enamels (two per cent) and caustic soda and resins (one per cent each). But paints became costlier by four per cent and varnishes by one per cent.

A two per cent rise in building bricks prices pushed down the index for Non-Metallic Mineral Products' group by 0.1 per cent to 166.9 points.

The Base Metals, Alloys and Metal Products' group index declined 0.2 per cent to 220 points due to lower prices of steel sheets, plates and strips (five per cent each) and basic pig iron and foundry pig iron (3 per cent each).

The Machinery and Machine Tools' group index was up 0.1 per cent to 146.7 points as ring spinning and doubling frames, air and gas compressors and enamelled copper wires became costlier by one per cent.

The Government kept the final WPI estimate at the provisional level of 192.9 and inflation at 4.1 per cent for the week ended June 18.

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