The Hindu Business Line : Cheaper food items keep inflation rate on leash

New Delhi, Sept. 14 The annual Wholesale Price Index-based inflation rose 3.52 per cent during the week ended September 1, lower than the previous week’s annual rise of 3.79 per cent.

The dip in the year-on-year inflation rate to its lowest levels since August 27, 2005, was mainly on account of lower prices of some food items such as bajra, eggs, moong and spices, and manufactured products including imported edible oil.

This is the third week in a row that inflation has remained below the four per cent mark.

The Reserve Bank of India has projected inflation at close to five per cent for the current fiscal and 4-4.5 per cent during the medium term.

During the latest reported week, among the Primary Articles’ group items, prices of food articles such as bajra and eggs declined by three per cent each while moong and condiments and spices fell by one per cent each. At the same time, some essential items such as fruits shot up by 17 per cent, followed by fish marine by nine per cent.

Milk dearer

Milk was up one per cent. During the week, prices of mineral like manganese ore dipped by 26 per cent, ochre by 19 per cent, vermiculite by eight per cent and fire clay by six per cent. The Fuel, Power, Light and Lubricants’ group declined by 0.1 per cent largely due to cheaper aviation turbine fuel, which fell by three per cent and furnace oil by one per cent.

Among the Manufactured Products’ group items, imported edible oil got cheaper by one per cent, cotton seed oil by five per cent, hessian cloth and sacking bags by one per cent.

Polystyrene declined by two per cent, zinc ingots by one per cent.

However, wheat flour (maida) got dearer by two per cent, sooji, coconut oil and khandsari by one per cent each. Even prices of oxygen went up by six per cent and bopp film by two per cent.

Lead costly

Lead ingots was up six per cent, basic and foundry pig iron by four per cent motorcycle by three per cent.