The Hindu Business Line : Costlier food items push up inflation rate to 4.41%

New Delhi, July 27 A spurt in primary article prices, led by some food items such as vegetables and cereals, pushed up the headline inflation rate in mid-July, even as analysts termed the rise as a temporary phenomenon and expect the RBI to hold rates steady at its policy review next Tuesday.

Cereals dearer

The annual wholesale price index-based inflation rose 4.41 per cent during the week ended July 14, higher than the previous week’s annual rise of 4.27 per cent, according to data released by the Ministry of Commerce and Industry on Friday.

The rise in headline inflation came mainly on account of the rise in prices of primary articles including vegetables, cereals, foodgrains and condiments and spices, while higher inflation in manufactured products led by processed edible oil products also contributed to the rising inflationary trend.

The Wholesale Price Index of all commodities increased to 212.9 points from 212.6 a week ago.

The index for the major Primary Articles Group rose by 0.7 per cent to 222.5 from 221.0 the previous week. The index for Food Articles group rose by 0.8 per cent to 220.9 due to higher prices of ragi (4 per cent), fruits & vegetables (3 per cent), wheat (2 per cent) and jowar, condiments & spices and bajra (1 per cent each).

Raw cotton up

However, the prices of fish-marine (2 per cent) and urad (1 per cent) declined.

The index for Non-Food Articles’ group rose by 0.4 per cent to 208.4 from 207.5 on higher prices of raw cotton (2 per cent) and soyabean and copra (1 per cent each).

The prices of raw rubber declined one per cent.

The index for fuel, power, light and lubricants as well as for manufactured products remained unchanged at the previous week’s levels

In the manufactured products group, inflation rate in Food Products group rose 0.1 per cent to 185 on higher prices of rice bran oil (3 per cent) and imported edible oil, groundnut oil, cotton seed oil and oil cakes (1 per cent each). The textile group index was up 0.2 per cent, that of papper and paper products by 0.1 per cent, while the inflation rate was down in Chemical and Chemical Products group.

Revised WPI

The final inflation numbers for the week ended May 19 was revised to 5.30 per cent compared to the provisional figure of 5.06 per cent.

This was done as WPI for the week stood revised to 212.4 points against the provisional figure of 211.9 points.