The Hindu Business Line : Inflation rate unchanged on cheaper food items

New Delhi, Jan. 11 The annual Wholesale Price Index-based inflation rose 3.50 per cent during the week ended December 29, unchanged from the previous week’s annual rise, Government data showed on Friday.

The year-on-year stayed below the RBI’s 5 per cent target, despite a marginal increase in manufactured product prices during the latest reported week. The annual rate of inflation stood at 5.89 per cent during the corresponding week a year ago.

Fruits cheaper

The Wholesale Price Index of all commodities was up at 216 points from 215 the previous week. On a disaggregated basis, the Primary Articles’ group index declined by 0.1 per cent as the index for the Food Articles group dipped by 0.3 per cent due to lower prices of fruits and vegetables (2 per cent) and fish-marine, moong and urad (1 per cent each).

Manufactured goods

The heavyweight Manufactured Products group rose by 0.2 per cent as the index for the Food Products group rose by 0.9 per cent due to higher prices of rape and mustard oil (5 per cent), oil cakes (4 per cent), butter and imported edible oil (3 per cent each) and rice bran oil, gingelly oil and cotton seed oil (1 per cent each). However, the prices of sooji (rawa) (2 per cent) declined.

The index for ‘Textiles’ group rose by 0.2 per cent due to higher prices of polyster staple fibre (4 per cent). However, the prices of texturised yarn (2 per cent) and hessian cloth (1 per cent) declined.

The index for the ‘Rubber and Plastic Products’ group rose by 0.4 per cent due to higher prices of injection moulded plastic items (4 per cent). The index for ‘Chemicals and Chemical Products’ group rose by 0.5 per cent due to higher prices of calcium ammonium nitrate n-content (1 per cent). The index for ‘Machinery and Machine Tools’ group declined by 0.2 per cent due to lower prices of enamelled copper wires (8 per cent).

All commodities

For the week ended November 3, the final WPI for ‘All Commodities’ stood at 216.1 points, as compared with the provisional estimate of 215.6 points, while the annual rate of inflation based on final index, calculated on point to point basis, stood at 3.35 per cent as compared to 3.11 per cent points.

Related Stories:
Inflation rate up on costlier manufactured items
Inflation rate drops on cheaper fruit, vegetables