The Hindu Business Line : Inflation declines further to 11.07%

Continuing with its declining trend, the annual Wholesale Price Index-based inflation rose 11.07 per cent during the week ended October 11, below the previous week's annual rise of 11.44 per cent, on account of an across-the-board dip in inflation levels, Government data showed on Thursday. Inflation in the same period in the previous year at 3.07 per cent, however, was significantly lower.

The official Wholesale Price Index (WPI) for `All Commodities' for the latest reported week declined by 0.3 per cent to 238.8 points from 239.6 points for the previous week.

PRIMARY ARTICLES

On a disaggregated basis, in case of the `primary articles' group, the annual point-to-point inflation declined to 11.53 per cent, as compared to 12.68 per cent reported last week. Out of a total of 98 articles, 28 articles have shown a decline in prices in the current week as compared to the week ended October 4. These included among others, jowar, bajra, barley, urad, moong, castor, groundnut, sunflower and linseed, eggs, ginger, papaya, turmeric, pepper, tapioca, coriander, raw cotton, raw rubber and iron ore. Another 47 articles have shown no increase in prices.

COMMODITY GROUP

In the commodity group `fuel, power, light and lubricants', the rate of inflation declined to 14.49 per cent during the latest week compared to the rate of inflation of 14.64 per cent in the previous week. While the prices of furnace oil declined, prices of other 17 commodities remained unchanged in the current week. Lubricants were the only commodity which witnessed an increase in prices.

MANUFACTURED PRODUCTS

In the case of `manufactured products', rate of inflation in the current week declined to 9.53 per cent, as compared to 9.69 per cent in previous week. Out of 318 commodities, a large number, 288 in all, have shown no increase in prices over the last week. In the case of 17 commodities, there has been a decline in prices. These commodities included rice bran, cottonseed, groundnut, mustard and imported edible oils; atta and sooji; lead and zinc ingots; groundnut and deoiled cake; acids; polyester staple fibre; cotton yarn; and PVC fittings and accessories. Only 13 products, particularly sugar and guar; gingelly oil; caustic soda; cycle tyres and tubes; hessian cloth and bags; decorative laminates; ghee; and bran witnessed an increase in prices. Inflation of 30 essential commodities declined to 7.81 per cent during the latest reported week from 7.88 per cent reported in the earlier week. There was a decline in the prices of seven of these commodities and prices of other 16 commodities remained unchanged.

For the week ended August 16, the final WPI for `All Commodities' stood revised to 241.1 points, as compared to the provisional estimate of 240.2 and annual rate of inflation based on final index, calculated on point to point basis, stood at 12.82 per cent as compared to the provisional estimate of 12.40 per cent.

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