The Hindu Business Line : Inflation rises to 11.98%

New Delhi, July 31 The annual Wholesale Price Index-based inflation rose 11.98 per cent for the week ended July 19, higher than the previous week’s annual rise of 11.89 per cent. The year-on-year inflation rate surged on account of mainly Manufactured Product prices.

The official WPI for ‘All Commodities’ for the latest reported week rose 0.1 per cent to 239.3 points, from 239 points for the previous week, the Ministry of Commerce and Industry said in a statement.

The annual rate of inflation stood at 4.65 per cent during the corresponding week a year ago.

Primary articles

On a disaggregated basis, the Primary Articles group index rose by 0.1 per cent as the index for the ‘Food Articles’ group rose by 0.1 per cent due to higher prices of moong (4 per cent), urad (3 per cent), arhar (2 per cent) and condiments and spices and gram (1 per cent each).

However, the prices of fish-marine and tea (1 per cent each) declined.

The index for ‘Non-Food Articles’ group declined marginally due to lower prices of gingelly seed and rape and mustard seed (1 per cent each).

However, the prices of linseed (2 per cent) and raw rubber (1 per cent) moved up.

The fuel, power, light and lubricants group index remained unchanged at its previous week’s level of 376.3 points.

Manufactured products

The index for the Manufactured Products group rose by 0.2 per cent and for ‘Food Products’ group by 0.6 per cent due to higher prices of oilcakes (2 per cent) and sugar and khandsari (1 per cent each).

However, the prices of rice bran oil (2 per cent) and gingelly oil and groundnut oil (1 per cent each) declined. The index for ‘Textiles’ group rose by 0.9 per cent due to higher prices of cotton yarn-cones (3 per cent) and cotton yarn-’hanks (2 per cent). However, the prices of hessian and sacking bags and hessian cloth (2 per cent each) and synthetic yarn (1 per cent) declined.

The index for ‘Paper and Paper Products’ group rose by 0.2 per cent due to higher prices of map litho paper (2 per cent) and other boards (all kinds) (1 per cent). The index for ‘Non-Metallic Mineral Products’ group rose marginally due to an increase in cement prices.

Basic metals

The index for ‘Basic Metals, Alloys and Metal Products’ group rose marginally due to higher prices of other iron steel (4 per cent) and lead ingots (2 per cent). However, the prices of zinc (4 per cent) and zinc ingots (3 per cent) declined.

The index for ‘Machinery and Machine Tools’ group rose by 0.1 per cent due to higher prices of power driven pumps (4 per cent) and other electrical equipment and systems and boilers, its parts and accessories (1 per cent each).

The final index for the week ended May 24 stood at 231.2 points, as compared to the provisional estimate of 229.8 points, and annual rate of inflation based on final index, calculated on point to point basis, stood at 8.90 per cent as compared to 8.24 per cent points reported provisionally.