The Hindu Business Line : Inflation rate dips on cheaper primary items

New Delhi, Jan 9 The annual Wholesale Price Index-based inflation rose 5.91 per cent during the week ended December 27, slower than the previous week’s annual rise of 6.38 per cent, with the year-on-year inflation rate marking a decline across all the major commodity groups.

Inflation was recorded at 3.83 per cent during the corresponding week a year ago. The official WPI for ‘All Commodities’ for the latest reported week declined by 0.3 per cent to 229.5 points, from 230.2 points for the previous week.

Inflation has consistently been on the decline for the last three months now and stands slightly above the rate of 5.7 per cent in the week ended February 23 last year.

Primary articles

On a disaggregated basis, among ‘primary articles’, the year-on-year rate of inflation decreased to 11.6 per cent during the latest reported week, compared with 12.1 per cent the previous week. Within primary articles, inflation rate in all its three sub-groups (food, non-food articles and minerals) have come down.

Inflation rate among food articles, at about 10 per cent, represents a decline after five consecutive weeks of increase in the rate, while the inflation rate in minerals have gradually decelerated to 40 per cent in the current week from its peak rate of 54.5 per cent in October.

Fuel, power

In the ‘fuel and power’ subgroup, the rate of inflation has remained unchanged at (-) 0.7 per cent.

In the “manufactured products” group, the inflation rate decreased to 6.2 per cent, compared with 6.8 per cent in the last week.

For the combined food index, the year-on-year inflation in the latest week was lower at 8.5 per cent compared with 8.8 per cent last week.

Contribution of primary articles to the year-on-year inflation rate for the latest reported week shows that this group accounted for 44.2 per cent of the total inflation, as against their share of 22 per cent to the overall WPI basket.

For the week ended November 1, the final WPI for ‘All Commodities’ stood at 234.9 points compared with the provisional estimate of 235.5 points and the annual rate of inflation based on final index, calculated on point to point basis, stood revised to 8.70 per cent compared with 8.98 per cent rate reported provisionally.

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Inflation rate drops as most items turn cheaper
Inflation continues downward bias

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