The Hindu Business Line : Cheaper food, textile items control inflation

Law of indices
Prices of manufactured products remain unchanged
Rates lower for sugar, oil and oil cakes
Raw silk, cotton, groundnut prices rise

New Delhi , June 9

The annual wholesale price index (WPI)-based inflation rose 4.68 per cent during the week ended May 27, lower than the previous week's annual rise of 4.74 per cent.

The dip in the year-on-year inflation growth rate was mainly on account of a fall in the prices of some food and textile products, according to the data released by the Ministry of Commerce and Industry on Friday.

The WPI ended the latest reported week at 201.3. The index was at 192.3 points during the same period a year ago. The inflation rate was 5.25 per cent during the corresponding previous period.

On a disaggregated basis, the index for the Primary Articles group was up by 0.3 per cent at 200.2 points due to increase in prices of food and non-food items. The index was at 190 points a year ago.

MANY INDICES GAIN

The Fuel, Power, Light and Lubricants group index was up by 0.2 per cent at 320.4 points (293).

The Manufactured Products group index remained unchanged at its previous week's level of 175.1 points, despite increase in prices of food products, textiles and paper. The index was at 170.7 points during the corresponding previous period.

Within the Primary Articles group, the Food Articles group index rose 0.3 per cent to 204.5 points due to higher prices of masur (five per cent), eggs (three per cent), vegetables, condiments and spices (two per cent each), and gram arhar and maize (one per cent each).

However, while moong prices declined by four per cent, bajra prices fell by one per cent.

The index for the Non-Food Articles group was up 0.1 per cent at 176.9 points due to higher prices of raw silk (four per cent), cotton seed (two per cent), and nigerseed and groundnut seed (one per cent each). Raw cotton prices fell by one per cent.

The Fuel, Power, Light and Lubricants group index saw an increase in prices of bitumen (four per cent), naphtha (two per cent) and furnace oil (one per cent).

FOOD INDEX DOWN

Within the Manufactured Products group, the Food Products group index declined by 0.2 per cent to 177.9 points due to lower prices of rice bran oil, oil cakes, sugar and gingelly oil (one per cent each).

However, prices rose for coconut oil (three per cent), atta (two per cent) and gur, khandsari and maida (one per cent each).

The index for the Textiles group was down by 0.2 per cent to 133.1 points due to a fall in prices of viscose staple fibre (three per cent) and texturised yarn, hesian and sacking bags (one per cent each).

The Base Metals Alloys and Metal Products group index rose by 0.4 per cent to 222.3 points.

A marginal decline in prices of white printing paper pushed down the Paper and Paper Products group index by 0.1 per cent to 188.1 points.

The Government revised the final inflation figure to 3.98 per cent for the week ended April 1 from the provisional 3.51 per cent, while the WPI stood corrected at 198.6 points against earlier estimates of 197.7 points.