The Hindu Business Line : Inflation falls to 4.84 pc despite rise in food prices

Highs & lows
Food Articles' index up marginally to 208.8 pts from 208.7 pts
Fall in lead ingots (6%) and zinc ingots (1%)
Tractor prices down (1%), but boilers & accessories up (3%)

New Delhi , July 7

The wholesale price index-based annual inflation rate rose 4.84 per cent during the week ended June 24, lower than the previous week's annual rise of 5.44 per cent despite increases in prices of food and manufactured items, according to the data released by the Ministry of Commerce and Industry on Friday.

The wholesale price index (WPI) ended the latest reported week at 203.6 points. The index was at 194.2 points during the corresponding year-ago period. The inflation rate was 4.30 per cent during the corresponding week of the previous year.

On a disaggregated basis, the index for the Primary Articles group index was up by 0.2 per cent to 205.7 points. The index was 192.1 points a year ago.

Fuel stays unchanged

The Fuel, Power, Light and Lubricants group index remained unchanged at the previous week's level of 326.4 points. It was 302.5 points during the corresponding period last year. The Manufactured Products group index rose by 0.1 per cent to 175.5 points.

Within the Primary Articles' group index, the index for Food Articles' group rose marginally to 208.8 points from 208.7 points for the previous week due to higher prices of tea (5 per cent), ragi (3 per cent), maize and bajra (2 per cent each) and moong, gram and eggs (1 per cent each). However, the prices of barley (1 per cent) declined.

Fall in raw rubber

The index for the Non-Food Articles' group rose by 0.9 per cent to 183.2 from 181.5 points for the previous week due to higher prices of logs and timber (24 per cent) and sunflower (2 per cent). However, the prices of raw rubber (3 per cent) declined. Within the Manufactured Products group, the index for Food Products' group rose by 0.2 per cent to 179.4 from 179.1 points for the previous week due to higher prices of oil cakes, ghee, sooji (rawa) and maida (1 per cent each).

The index for Chemicals and Chemical Products' group rose by 0.2 per cent to 193.5 from 193.2 points for the previous week due to higher prices of benzene (15 per cent), PVC resins (13 per cent), purified terephthalic acid (9 per cent) and caustic soda (sodium hydroxide) (3 per cent).

Marginal dip in metals

The index for Basic Metals Alloys and Metal Products' group declined marginally to 222.1 from 222.2 points for the previous week due to lower prices of lead ingots (6 per cent) and zinc ingots (1 per cent).

The index for Machinery and Machine Tools' group declined by 0.1 per cent to 151.6 from 151.7 points for the previous week due to lower prices of complete tractors (1 per cent). However, the prices of boilers, its parts and accessories (3 per cent) moved up.

The inflation rate has been revised to 3.9 per cent for the week ended April 29 against the provisional estimate of 3.59 per cent. The WPI has been revised to 199.6 points against the provisional 199 points.