The Hindu Business Line : Inflation tops 5% tracking all-round price hike

Rising prices
Inflation growth sharpest since May 2005
Food, energy, and manufactured products dearer
Fruits, bajra post decline in prices

New Delhi , June 23

The annual wholesale price index-based inflation was up 5.24 per cent during the week ended June 10, higher than the previous week's annual rise of 4.72 per cent.

The spurt in the year-on-year inflation rate was on account of an all-round increase in prices, with food, energy and manufactured product prices going up during the latest reported week, according to data released by the Ministry of Commerce and Industry today.

The inflation growth during the latest reported week is the sharpest since May 2005.

Food items costly

The Wholesale Price Index (WPI) for all commodities ended the latest reported week at 203 points, against 192 points during the corresponding previous period. The inflation rate was 4.50 per cent during the same week last year.

On a disaggregated basis, the Primary Articles group index was up 0.2 per cent to 202.7 points (190.6 points) due to an increase in prices of food and non-food items.

The Fuel, Power, Light and Lubricants group index was up 1.7 per cent at 326 points due to a spurt in prices of petrol (nine per cent), high speed diesel and light diesel (seven per cent each), and bitumen (three per cent).

Manufactured items up

The Manufactured Products group index rose 0.2 per cent to 175.6 points (170.6 points) following an increase in prices of food, textiles, paper, rubber, chemicals, non-metallic mineral, base metals, machinery, and transport parts.

Within the Primary Articles group, the Food Articles group index rose 0.1 per cent to 207 points due to higher prices of jowar (seven per cent), eggs (four per cent), vegetables and arhar (three per cent each), condiments and spices and gram (two per cent each), and wheat, moong and fish-inland (one per cent each).

The Textiles group index was up 0.3 per cent at 133.4 points due to higher prices of texturised yarn and polyster yarn (three per cent each) and mixed fabrics, cotton grey cloth and canvas (one per cent each), while other cotton yarn prices declined by one per cent.

Tyres dearer

A three per cent increase in prices of tractor tyres pushed up the Rubber and Plastic Products group index by 0.2 per cent to 142.2 points.

The Chemicals and Chemical Products group index was up by 0.1 per cent at 193.1 points due to costlier thinners (five per cent), liquid nitrogen (four per cent) and paints (two per cent), but enamels became cheaper by six per cent. A marginal increase in cement prices pushed up the Non-Metallic Mineral Products group index by 0.1 per cent to 188.7 points.

Utensils prices rise

The Base Metals Alloys and Metal Products group index rose 0.1 per cent to 222.5 points as prices moved up for zinc and utensils (four per cent each), chains (two per cent) and zinc ingots (one per cent), but lead ingot prices fell by three per cent.

The Government revised upwards its final inflation figure to 3.7 per cent for the week ended April 15 from the provisional 3.55 per cent, while the WPI stood corrected at 198.8 points as against the earlier estimate of 198.5 points.