The Hindu Business Line : Inflation lower on cheaper fruits, vegetables

THE annual wholesale price index-based inflation rose 4.40 per cent during the week ended December 24, against previous week's annual rise of 4.62 per cent. The lower growth was mainly due to a fall in prices of fruits and vegetables and manufactured products, according to data released here on Friday by the Ministry of Commerce and Industry.

Inflation was at 6.56 per cent during the corresponding week of 2005. During the latest reported week, the Wholesale Price Index fell by 0.2 per cent to 196.8 points. WPI stood at 188.5 points a year ago.

On a disaggregated basis, the Primary Articles' group dipped 0.4 per cent to 194.3 points due to cheaper food products even as prices rose for non-food items. The index was 186 points during the corresponding week a year ago. The Fuel, Power, Light and Lubricants group index remained unchanged at the previous week's level of 311.1 points. The index was at 288.1 points during the same period last year.

The heavy-weighted Manufactured Products group index fell 0.1 per cent to 172.2 points due to cheaper food, paper, non-metallic mineral, base metals and machinery. The index was 167.1 points a year ago.

Among the Primary Articles' group, the index for Food Articles group fell 0.7 per cent to 196.3 points as prices fell for vegetables (6.4 per cent), poultry chicken (four per cent), moong (three per cent), fruits (two per cent) and rice (one per cent). However, prices moved up for condiments and spices (five per cent), tea (three per cent), bajra and maize (two per cent each) and wheat (one per cent).

The index for Non-Food Articles group rose by 0.3 per cent to 176.4 points due to higher prices of fodder (five per cent), raw jute (three per cent) and soyabean and sugarcane (one per cent each). Cottonseed, linseed and niger seed, however, turned cheaper by one per cent.

Among the Manufactured Products' group, the Food Products group index fell 0.1 per cent to 176.9 points due to lower prices of coconut oil (nine per cent), gur (two per cent) and khandsari and sugar (one per cent each). However, prices rose for rice bran oil (three per cent) and oil cakes (one per cent).

The Chemicals and Chemical Products group index declined by 0.3 per cent to 188.9 points owing to lower prices of PVC resins (18 per cent), benzene (14 per cent) and purified terephthalic acid (four per cent). A marginal increase in cement prices pushed up Non-Metallic Mineral Products group index by 0.2 per cent to 168.5 points, but building bricks became cheaper by two per cent.

A seven per cent increase in prices of zinc pushed up the Base Metals Alloys and Metal Products group index marginally to 221.7 points. The Machinery and Machine Tools group index rose by 0.1 per cent to 146.6 points due to higher prices of computer and computer-based systems and electric motors: phase three (one per cent).

According to the data, the final WPI figures for the week ended October 29 stood unaltered at 198.3 points and the growth in inflation was unchanged at 4.75 per cent.