The Hindu Business Line : Inflation up on costlier fuel, non-food items

THE annual wholesale price index-based inflation rose 4.62 per cent during the week ended December 17, higher than the previous week's annual rise of 4.50 per cent. The rise in the year-on-year inflation rate was mainly on account of higher prices of non-food items and fuel products such as naphtha and furnace oil, according to data released here on Friday by the Ministry of Commerce and Industry.

The Wholesale Price Index (WPI) touched 197.1 points during the latest reported week, from 188.4 points a year ago. Inflation had risen 6.44 per cent during the corresponding week of the previous year.

On a disaggregated basis, the Primary Articles' group index fell 0.4 per cent to 195.1 points due to cheaper food items. The index was at 185.5 points during the corresponding period last year. The Fuel, Power, Light and Lubricants group index went up 0.1 per cent to 311.1 points due to increase in prices of bitumen (four per cent), furnace oil and naphtha (one per cent each). The index was at 288.1 points during the same week last year. The Manufactured Products group index fell 0.2 per cent to 172.4 points as prices of food items, basic metals and machinery went down. It was 167.2 points a year ago.

Among the Primary Articles' group, the Food Articles' group index declined 0.7 per cent to 197.7 points due to lower prices of urad (four per cent), condiments and spices and fruits and vegetables (three per cent each) and barley (one per cent). Bajra and pork, however, became costlier by one per cent. The Non-Food Articles group index rose 0.6 per cent to 175.9 points due to higher prices of raw rubber and cotton seed (four per cent each), raw cotton and fodder (three per cent each), soyabean (two per cent) and linseed, copra, niger seed and raw jute (one per cent each). However, there was three per cent fall in prices of castor seed and one per cent each in gingelly seed, mesta, tobacco, groundnut seed and rape and mustard seeds.

Among the Manufactured Products' group, the Food Products group index declined 0.4 per cent to 177.1 points due to lower prices of oil cakes (three per cent) and rice bran oil (two per cent). However, prices rose for gingelly oil, gur and coconut oil (one per cent each). A one per cent increase in caustic soda prices pushed up the Chemicals and Chemical Products group index by 0.1 per cent to 189.4 points. The index for Base Metals Alloys and Metal Products group declined 0.1 per cent to 221.6 points due to lower prices of other iron steel (two per cent each).