The Hindu Business Line : Inflation rate unchanged as primary articles rule firm

Staying firm
Base metals, alloys and metal products' group prices rose 16.58 per cent.
Prices in the non-food articles' group were up 13.9 per cent

New Delhi March 30 The annual wholesale price index-based inflation rose 6.46 per cent during the week ended March 17, matching the previous week's increase, data showed on Friday.

The year-on-year inflation rate was steady even as prices of Primary Articles and Manufactured Products saw a surge during the latest week.

Above tolerance limit

The Wholesale Price Index (base 1993-94), on which inflation data is based, rose to 209.4 points during the week, up 0.05 per cent from 209.3 points during the previous week. Annual inflation stood at 3.69 per cent during the corresponding week a year ago.

After scaling to a two-year high of 6.73 per cent on February 3, inflation had fallen to 6.05 per cent in the fortnight ended February 17. However, it started rising again thereafter. The latest inflation level, though constant during the last three weeks in a row, is way above the upper limit of inflation tolerance band (5.0-5.5 per cent) projected by the RBI for 2006-07.

Fruits, vegetables ease

During the latest reported week, inflation rate in the Primary Articles' group increased marginally to 12.03 per cent from 11.73 per cent during the previous week. The rise in inflation rate was seen across all primary articles barring foodgrain, fruits and vegetables and a few non-food segments.

Inflation in Manufactured Goods also increased further to 6.57 per cent during the latest week, from 6.46 per cent during the week ended March 10.

This was led by the rise in prices of mainly manufactured food articles.

Price escalation in the fuel, power, light and lubricants' group fell to an all-time low of 1.01 per cent.

Among the Primary Articles' group, the prices in the non-food articles' group increased 13.9 per cent during the latest reported week, up from 12.64 per cent during the previous week. Mineral prices also shot up 22.09 per cent against 21.62 per cent during the previous week.

Metals dearer

Among the Manufactured Products group, the base metals, alloys and metal products' group prices rose 16.58 per cent during the latest week, up from 16.38 per cent. The prices in the machinery and machine tools group were up 8.23 per cent during the latest week. The final inflation figure for the week ended January 20 was revised upwards to 6.31 per cent compared to 6.11 per cent estimated provisionally. This is based on revision in wholesale price index to 208.9 points as compared to 208.5 estimated earlier for that week.