The Hindu Business Line : Inflation rate drops on cheaper pulses, edible oil

New Delhi, Oct. 12 The annual Wholesale Price Index-based inflation rose 3.26 per cent during the week ended September 29, lower than the previous week’s annual rise of 3.42 per cent.

The dip in the inflation rate, calculated on point-to-point basis, was mainly on account of a fall in prices of some food articles such as pulses and edible oils, besides some minerals, according to Government data issued here on Friday. The annual inflation rate was 5.41 per cent during the corresponding week of the previous year. The Wholesale Price Index of all commodities increased to 226.4 points from 226.2 a week ago.

Tea, urad cheaper

On a disaggregated basis, the Primary Articles’ group index rose 0.1 per cent to 226.4 points, with the Food Articles group index rising 0.2 per cent due to higher prices of fish-marine (2 per cent) and ragi, eggs and barley (1 per cent each). However, the prices of tea (4 per cent) and moong and urad (1 per cent each) declined. The Non-Food Articles’ group index rose by 0.1 per cent to 211.7 points due to higher prices of mesta (15 per cent), soyabean and fodder (3 per cent each), raw rubber (2 per cent) and castor seed (1 per cent). However, the prices of raw tobacco (2 per cent) and copra, raw jute and gingelly seed (1 per cent each) declined.

Fire clay dearer

The Minerals group index declined by 1.8 per cent to 429.8 points due to lower prices of barytes (10 per cent), iron ore (3 per cent) and phosphorite (2 per cent). However, the prices of magnesite (91 per cent), fluorite (62 per cent), fire clay (52 per cent) and ochre (23 per cent) moved up.

The Fuel, Power Light and Lubricants’ group index remained unchanged at its previous week’s level of 322 points. The Manufactured Products’ group index rose 0.1 per cent to 187.4 points as the index for Food Products group rose by 0.1 per cent due to higher prices of gur (2 per cent) and soyabean oil (1 per cent). However, the prices of coconut oil and gingelly oil (1 per cent each) declined. The index for Textiles group declined by 0.1 per cent to 132.8 points due to lower prices of hessian cloth (2 per cent) and hessian and sacking bags (1 per cent).

Acids higher

The index for Chemicals and Chemical Products group rose by 0.2 per cent to 203.9 points due to higher prices of acids (8 per cent). The index for Non-Metallic Mineral Products group rose by 0.2 per cent to 207.4 points due to higher prices of electrodes (3 per cent).

The index for Base Metals Alloys and Metal Products group rose by 0.1 per cent due to higher prices of zinc (7 per cent), MS bars and rounds (5 per cent), lead ingots (4 per cent) and zinc ingots and bolts and nuts (2 per cent each). However, the prices of pipes and tubes (1 per cent) declined.

The index for Machinery and Machine Tools group rose by 0.1 per cent to 166.3 points due to higher prices of agricultural implements (10 per cent). The index for Transport Equipment and Parts group rose by 0.1 per cent to 165.1 points due to higher prices of springs (8 per cent).

According to the data, the final WPI index for the week ended August 4 stood revised at 213.8 points, as compared to the provisional estimate of 213.1 points, while the annual rate of inflation based on final index, calculated on point to point basis, stood at 4.39 per cent as compared to the provisional figure of 4.05 per cent.

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