The Hindu Business Line : Inflation rate surges on rise in fuel products

New Delhi, Dec. 14 The annual wholesale price index-based inflation rose 3.75 per cent for the week ended December 1, sharply above the previous week’s annual rise of 3.01 per cent. The increase in the year-on-year inflation rate was mainly on account of rise in prices of food items, including fruits and vegetables, and some fuel products, Government data showed on Friday.

The official Wholesale Price Index for All Commodities for the latest reported week rose 0.3 per cent to 216.0 points, from 215.4 points for the previous week. The annual rate of inflation stood at 5.36 per cent a year ago.

On a disaggregated basis, the Primary Articles’ group index rose by 0.3 per cent to 223.3 points as the index for Food Articles group rose by 0.2 per cent to 222.3 points due to higher prices of bajra (3 per cent) and fruits and vegetables and condiments and spices (1 per cent each). However, the prices of fish-marine (1 per cent) declined.

Non-food articles

The index for Non-Food Articles group rose by 0.4 per cent to 209.9 points due to higher prices of copra (7 per cent), gingelly seed (3 per cent), raw cotton (2 per cent) and groundnut seed and castor seed (1 per cent). However, the prices of raw rubber (6 per cent) and raw tobacco (2 per cent) declined.

The Fuel, Power, Light and Lubricants group rose by 0.8 per cent to 328.6 points due to higher prices of aviation turbine fuel (16 per cent), naphtha (9 per cent) and bitumen (6 per cent).

The Manufactured Products group rose by 0.1 per cent to 188.3 points as the index for the Food Products group declined by 0.2 per cent due to lower prices of rice bran oil (9 per cent), khandsari (2 per cent) and maida (1 per cent).

However, the prices of coconut oil and gingelly oil (2 per cent each) and groundnut oil, oil cakes and imported edible oil (1 per cent each) moved up. The index for the Textiles group rose by 0.1 per cent due to higher prices of texturised yarn (2 per cent).

Chemical group

The index for the Chemicals and Chemical Products group rose by 0.1 per cent due to higher prices of acid (all kinds) (4 per cent). The index for ‘Non-Metallic Mineral Products’ group declined marginally due to minor fall in the prices of cement.

The index for the Basic Metals Alloys and Metal Products group rose by 0.3 per cent for the previous week due to higher prices of bright bars (5 per cent), zinc ingots and foundary pig iron (3 per cent each), basic pig iron (2 per cent) and other iron steel, lead ingots and bars and rods (1 per cent each).

However, the prices of pipes and tubes (2 per cent) declined. The index for Machinery and Machine Tools group rose by 0.1 per cent due to marginal rise in the prices of complete tractors.

The final wholesale price index for the week ended October 6 stood revised at 215 points, as compared to the provisional 214.7 points, and the annual rate of inflation based on final index, calculated on point to point basis, stood revised at 3.22 per cent as compared to the provisional estimate of 3.07 per cent.

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