The Hindu Business Line : Inflation rises to 3.96 pc on higher energy prices

The annual wholesale price index-based inflation rose 3.96 per cent during the week ending May 6, higher than the previous week's annual rise of 3.59 per cent. The increase was on account of higher food and energy prices, according to the data released on Friday by the Ministry of Commerce and Industry.

The WPI for all commodities rose 0.4 per cent to 199.7 points during the week ended May 6. The index was at 199.0 points during the previous week.

On a disaggregated basis, the Primary Articles' group index fell 0.2 per cent to 195.8 points during the week ended March 6. It was 188.1 points a year ago. The index for Manufactured Products rose 0.2 per cent to 174.3 points due to an increase in sugar, paper, metal and chemical product prices. It was 170.9 points a year ago. The index for fuel, power, light and lubricants rose 0.9 percent to 319.7 from 316.8 due to higher prices of lubricants, aviation turbine fuel, naphtha, furnace oil and bitumen. It was 293.2 points a year-ago.

Primary articles

Among the Primary Articles' group, the index for food articles rose by 0.2 per cent to 198.6 points from 198.2 points due to higher prices of pulses, coarse cereals, fruit, vegetables and milk.

Among food items, prices of masur and barley went dearer by 3 per cent each, followed by bajra and jowar each going up by 2 per cent. The fruits and vegetables, gram and milk also registered a one per cent price rise.

However, the prices of eggs went down by 9 per cent, while poultry chicken got cheaper by 7 per cent during the week.

The index for non-food articles increased by 0.2 per cent to 177.0 points from 176.6 points as soyabean was dearer by 7 per cent, while the prices of sunflower and copra increased by 2 per cent each.

However, the price of raw silk declined by 11 per cent, fodder got cheaper by 4 per cent and safflower softened by 2 per cent. Raw cotton and niger seed too declined by 1 per cent each.

Among the manufactured products, in the Basic Metal, Alloys and Metal Products category, aluminium bars and rods prices rose by 42 per cent, aluminium ingots went up by 12 per cent and pig iron by 1 per cent. However, the prices of bright bars and barrels fell down by 2 per cent each.

The prices of epoxy resins shot up by 13 per cent in the Chemical and Chemical Products category.

While, carbon black and polystyene prices increased by 5 per cent and 2 per cent respectively, liquid nitrogen prices fell by 2 per cent.

Textile group

In the Textile group, woollen yarn prices weakened by 10 per cent, while in the Beverages Tobacco and Tobacco Products group, the prices of bidi fell by 2 per cent. In the food products category, sugar prices increased by 0.35 per cent. However, the prices of processed tea dipped by 9 per cent and rape and mustard oil was down by 1 per cent.

In Non Metallic Mineral Product category, cement prices declined by 1 per cent. The index for fuel, power, light and lubricants category, was up largely due to the 18 per cent rise in prices of lubricants.

The other contributors were aviation turbine fuel, which registered a price rise of 11 per cent, followed by naphtha prices of which, rose by 9 per cent.

The Government revised downward the inflation growth to 3.80 per cent for the week ended March 11 from the provisional estimate of 4.28 per cent, while WPI stood corrected at 196.6 points from the earlier estimate of 197.5 points.