The Hindu Business Line : Dip in food, energy prices keeps inflation on leash

At a glance
Prices up for coffee (10%) and bran (14%) & jelly filled telephone cables (15%).
Rates declined for penicillin (19%), electric motors (9%), vegetables (6.5%).

New Delhi , Dec. 15

The annual wholesale price index-based inflation rose 5.16 per cent during the week ended December 2, lower than the previous week's annual rise of 5.3 per cent. The dip in year-on-year inflation rate was mainly on account of a decline in food and energy prices, Government data showed on Friday. During the latest reported week, the Wholesale Price Index (WPI) for all commodities fell 0.4 per cent to 207.8 points as against 197.6 points a year ago. The annual inflation rate was 4.44 per cent during the corresponding week of the previous year.

On a disaggregated basis, the Primary Articles' group index declined by 0.3 per cent to 211.9 points due to a fall in food prices. The index was at 196.7 points during the corresponding period a year ago.

Primary Articles

The Fuel, Power, Light and Lubricants group index fell by almost 2 per cent to 322.6 per cent due to a decrease in price of furnace oil (14 per cent), naphtha (9 per cent), petrol (4 per cent), aviation turbine fuel and high-speed diesel oil (3 per cent each).

Coffee dearer

Among the Primary Articles' group, the Food Articles' group index fell by 0.6 per cent to 214 points due to lower prices of vegetables (6.5 per cent), fruits, moong, bajra and milk (1 per cent each). However, prices moved up for coffee (14 per cent), eggs and urad (3 per cent), arhar, jowar, ragi, condiments and spices (1 per cent each).

The Non-Food Articles group index was up by 0.9 per cent to 189.8 points due to higher prices of sunflower (6 per cent), rape and mustard seed and soyabean (3 per cent each), groundnut seed, logs and timber (2 per cent each). However, prices declined for rubber (3 per cent), cottonseed, raw jute and raw cotton (1 per cent each).

Among the Manufactured Products' group, the Food Products group index rose 0.4 per cent to 185.4 points due to higher prices of bran (14 per cent), rape and mustard oil (6 per cent), sooji, atta and maida (4 per cent each) and groundnut oil (1 per cent). However, prices declined for gur (3 per cent), oil cakes (2 per cent), ghee and khandsari (1 per cent each).

VSF cheaper

A one per cent fall in potable country liquor prices pulled down marginally the Tobacco and Tobacco Products group index to 242.4 points.

A two per cent increase in the prices of footwear western type pushed up the Leather and Leather Products group index by 2.1 per cent to 159.3 points.

The Chemicals and Chemical Products group index declined by 0.1 per cent to 194 points due to 19 per cent fall in penicillin, even as vitamin liquids moved up by 1 per cent.

The Government revised upward the final inflation figure to 5.36 per cent for the week ended October 7, compared to the provisional 5.16 per cent, while the WPI stood corrected at 208.3 points as against the earlier estimate of 207.9 points.