The Hindu Business Line : Cheaper fuel pulls down inflation rate to 8.4%

In ‘Fuel, Power, Light and Lubricants group’, the rate of year-on-year inflation declined to 5.28 per cent in the current week compared to an inflation of 7.81 per cent reported in the previous week.

Our Bureau

New Delhi, Dec. 4 The annual Wholesale Price Index-based inflation rose 8.4 per cent for the week ended November 22, lower than the previous week’s annual rise of 8.84 per cent.

The dip in the year-on-year inflation rate was entirely on account of a big fall in the inflation in the fuels group. The annual rate of inflation, calculated on point to point basis, was 3.11 per cent during the corresponding week of the previous year.

During the latest reported week, the official WPI for ‘All Commodities’ declined 0.6 per cent to 233.7 points from 235.1 points for the previous week, according to the data released by the Ministry of Commerce and Industry on Thursday.

Primary articles

In the ‘Primary Articles’ group, the annual year–on-year inflation increased further to 11.98 per cent during the latest reported week, as compared to 11.90 per cent reported the previous week. It was 4.68 per cent during the corresponding week a year ago.

Food articles

The annual rate of inflation for ‘Food Articles’ stood at 10.43 per cent points for the week ended November 22 as compared to 9.93 per cent points in the previous week. It was 3.01 per cent during the previous week a year ago.

In the commodity group, ‘Fuel, Power, Light and Lubricants group’, the rate of year-on-year inflation declined to 5.28 per cent in the current week compared to an inflation of 7.81 per cent reported in the previous week. In the case of the ‘Manufactured Products’ group, the year-on-year inflation rate in the current week increased marginally to 8.15 per cent, as compared to 8.01 per cent in previous week.

A Finance Ministry analysis of the contribution of commodity groups to year-on-year inflation rate for the latest reported week showed that Primary Articles — covering food, non-food and minerals — accounted for nearly 32.61 per cent of inflation, which is 10 percentage points more than their contribution to the WPI basket.

For the week ended September 27, the final WPI for ‘All Commodities’ stood revised to 241.3 points, as compared to the provisional estimate of 240.7 points, and annual rate of inflation based on final index, calculated on point to point basis, stood at 12.08 per cent as compared to the 11.80 per cent reported provisionally.

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