The Hindu Business Line : Dip in textile prices pegs inflation lower

THE annual wholesale price index-based inflation rose 4.24 per cent during the week ended January 7. It was, however, lower than the previous week's annual rise of 4.40 per cent. The lower rate was largely on account of a dip in textile prices and certain primary articles, according to data released here on Friday by the Ministry of Commerce and Industry. The inflation rate was 5.77 per cent during the corresponding week of 2004.

On a disaggregated basis, the Primary Articles' group index rose 0.2 per cent to 194.7 due to an increase in the prices of essential food and non-food articles. The Fuel, Power, Light and Lubricants group index rose marginally to 311.2 points during the week from 311.1 due to increase in the prices of bitumen by 4 per cent and naphtha by 1 per cent. However, the prices of furnace oil declined by 2 per cent.

The Manufactured Products group index rose by 0.1 per cent to 172.2 points due to costlier food products, paper, rubber, plastic, chemicals and cement.

Among the Primary Articles' Group, the Food Products' index rose 0.4 per cent to 177.7 as bran and hydrogenated vanaspati prices moved up by 3 per cent each, rice bran oil and atta (2 per cent each), sugar, maida, sooji (rawa) and coconut oil (1 per cent each). However, the prices of rapeseed and mustard oil and oil cakes declined by 1 per cent each. During the week, prices of wheat, fruits and vegetables rose by 1 per cent each, while barley went up by 2 per cent. Among the other food articles, prices of bajra, rice and condiments and spices declined by one per cent each. Among the non-food articles, prices of sunflower moved up 6 per cent, while raw jute and fodder were up by 3 per cent each and linseed increased by 2 per cent. Prices of mesta, groundnut seed and raw tobacco rose by 1 per cent each.

Among the Manufactured Products' group, the group index for textiles declined by 0.5 per cent to 129.5 due to lower prices of tyre cord (13 per cent) texturised yarn (5 per cent), synthetic yarn (4 per cent) and acrylic yarn (1 per cent). However, the prices of woollen cloth rose by (7 per cent) and the same for hessian and sacking bags, viscose staple fibre and hessian cloth moved up by (1 per cent each).

The group index for Paper and Paper Products rose by 0.1 per cent to 177.8 due to higher prices of newspaper which rose by (2 per cent).

The index for Leather and Leather products group declined by 1.0 per cent to 168.1 due to lower prices of footwear western type (1 per cent).

The group index for Rubber and Plastic Products rose by 0.9 per cent to 141.3 on account of higher prices of cycle tubes (11 per cent) and cycle tyres (4 per cent).

The index for chemicals group rose by 0.1 per cent to 188.9 due to higher prices of epoxy resins (11 per cent).

The group index for non-metallic mineral products rose by 0.8 per cent to 169.7 due to higher prices of cement (1 per cent). The index for Base Metal Alloys and Metal Products group declined by 0.1 per cent to 221.2 on account of lower prices of other iron steel (2 per cent) and basic pig iron, foundary pig iron, lead ingots and steel sheets, plates and strips (1 per cent each). However, the prices of zinc ingots moved up by (1 per cent).

The group index for Transport Equipment and Parts fell by 0.1 per cent to 160.5 due to lower prices of motorcycles (1 per cent).