The Hindu Business Line : Inflation lower on cheaper non-food items

The annual wholesale price index-based inflation rose 3.54 per cent during the week-ended April 22, marginally lower than the previous week's annual rise of 3.55 per cent.

The dip in the year-on-year inflation rate was mainly on account of lower prices of raw cotton and castorseeds, according to data released by the Ministry of Commerce and Industry on Friday.

During the latest reported week, the Wholesale Price Index (WPI) was up 0.2 per cent to 198.8 points, against 198.5 points a year ago.

RISE IN FOOD PRICE

The inflation rate was at 5.96 per cent during the corresponding week of the previous year.

On a disaggregated basis, the Primary Articles' group index rose 0.2 per cent to 194.7 points due to increase in prices of food articles while non-food items declined.

The Fuel, Power, Light and Lubricants group index remained unchanged at the previous week's levels of 316.8 points. The index of Manufactured Products group rose 0.2 per cent to 173.9 points due to increase in prices of food, chemicals, non-metallic minerals, base metals, machinery and beverage tobacco.

Among the Primary Articles' group, the index for Food Articles group rose 0.3 per cent to 197.3 points due to higher prices of eggs (11 per cent), condiments and spices and wheat (two per cent each) and jowar, barley, bajra and gram (one per cent each). However, the prices of maize and arhar declined by one per cent each.

Copra cheap

The Non-Food Articles group index declined by 0.1 per cent to 176.5 points owing to lower prices of copra (four per cent), linseed (three per cent), raw cotton (two per cent) and raw jute and castor seed (one per cent each).

Among the Manufactured Products' group, the Food Products group index rose by 0.2 per cent to 178.8 points due to costlier groundnut oil (two per cent) and ricebran oil, coconut oil and sugar (one per cent each).

However, the prices of unblended black tea leaf and cotton seed oil declined by four per cent and one per cent respectively.

The Government revised the inflation figure downward to 4.18 per cent for the week ended February 25 from provisional 4.29 per cent and WPI stood corrected at 196.8 points from earlier estimate of 197.0 points.