The Hindu Business Line : Inflation rate drops on cheaper fruit, vegetables

In a nutshell
Food Articles group index moved down by 0.2 per cent.
Manufactured Products group declined by 0.2 per cent.
Chemicals and Chemical Products fell by 0.05 per cent.

Our Bureau

New Delhi, Dec. 28 The annual Wholesale Price Index-based inflation rose 3.45 per cent during the week ended December 15, lower than the previous week’s annual rise of 3.65 per cent.

The drop in the year-on-year inflation rate was mainly on account of a fall in the prices of Primary Articles including fruits and vegetables, and also most textile and chemical products.

The Wholesale Price Index for ‘All Commodities’ for the latest reported week declined by 0.1 per cent to 215.6 points, from 215.9 points in the previous week. The annual rate of inflation stood at 5.73 per cent during the corresponding week a year ago.

Sector-wise data

On a disaggregated basis, the Primary Articles group index declined by 0.2 per cent as the Food Articles group index moved down by 0.2 per cent due to lower prices of bajra (3 per cent) and fruits and vegetables (2 per cent). However, the prices of poultry chicken (2 per cent) and urad and condiments and spices (1 per cent each) moved up.

Wool falls

The index for Non-Food Articles also declined by 0.2 per cent due to lower prices of raw wool (6 per cent), raw rubber (2 per cent) and raw cotton and copra (1 per cent each). However, the prices of raw jute (1 per cent) moved up.

The Fuel, Power, Light and Lubricants group remained unchanged at its previous week’s level of 328.6 points.

The Manufactured Products group declined by 0.2 per cent to 187.9 points as the index for the Textiles group fell by 3 per cent due to lower prices of cotton yarn-cones (9 per cent), cotton yarn-hanks (7 per cent) and other cotton yarn (3 per cent). However, the prices of tyre cord fabric (1 per cent) moved up.

The index for the Chemicals and Chemical Products group declined by 0.05 per cent due to lower prices of bopp (biaxially oriented polypropylene) film (2 per cent).

Steel dearer

The index for the Base Metals, Alloys, and Metal Products group declined by 0.1 per cent due to lower prices of lead ingots (5 per cent ) and zinc ingots, foundry pig iron, steel sheets, plates and strips and basic pig iron (1 per cent each).

However, the prices of other iron steel (1 per cent) moved up.

The index for the Food Products group, however, rose 0.3 per cent due to higher prices of malted food (3 per cent), oil cakes (2 per cent ) and gingelly oil, khandsari, imported edible oil and groundnut oil (1 per cent each).

However, the prices of rice bran oil (3 per cent) declined.

The index for Beverages, Tobacco and Tobacco Products group increased by 3.3 per cent due to higher prices of cigarettes (8 per cent) and potable country liquor (6 per cent).

The index for the Transport Equipment and Parts group was up by 0.2 per cent due to higher prices of other automobile spare parts (2 per cent) and bicycles (1 per cent).

For the week ended October 20, the final WPI stood revised at 215.3 points, compared with 215.1 points reported provisionally, while the annual rate of inflation based on final index, calculated on point to point basis, stood at 3.11 per cent, as against 3.02 per cent points reported provisionally.

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