The Hindu Business Line : Inflation rate down on higher base effect

The index for ‘Food Articles’ group rose by 0.3 per cent due to higher prices of ragi (17%), tea (2%) and bajra, maize, fruits and vegetables and urad (1% each).

Our Bureau

New Delhi, May 14 The annual Wholesale Price Index-based inflation rose 0.48 per cent during the week ended May 2, below the previous week’s annual rise of 0.70 per cent, government data showed on Thursday.

The dip in the year-on-year inflation reading was primarily on account of the high base last year. The annual inflation rate was recorded at 8.73 per cent during the corresponding week of the previous year.

Dearer ragi

The official WPI for “All Commodities” for the latest reported week rose by 0.4 per cent to 231.6 points from 230.7 points for the previous week.

On a disaggregated basis, the Primary Articles group index rose by 0.4 per cent as the index for ‘Food Articles’ group rose by 0.3 per cent due to higher prices of ragi (17 per cent), tea (2 per cent) and bajra, maize, fruits and vegetables and urad (1 per cent each).

Wool flares up

The index for “Non-Food Articles” group rose by 0.8 per cent due to higher prices of raw wool (24 per cent), raw rubber and sunflower (6 per cent each), raw cotton (2 per cent) and copra (1 per cent). However, the prices of raw silk (2 per cent) and tobacco (1 per cent) declined.

The fuel and power group index rose by 0.2 per cent due to higher prices of furnace oil and naphtha (3 per cent each) and light diesel oil (1 per cent). However, the prices of bitumen and aviation turbine fuel (1 per cent each) declined.

The Manufactured Products group index rose by 0.4 per cent as the index for ‘Food Products’ group rose by 0.7 per cent due to higher prices of imported edible oil (4 per cent) and sugar (3 per cent). However, the prices of groundnut oil, rice bran oil, gingelly oil and gur (1 per cent each) declined.

Pesticides up

The index for ‘Chemicals and Chemical Products’ group rose by 1.3 per cent due to higher prices of pesticides (33 per cent), benzene (27 per cent), calcium ammonium nitrate n-content (24 per cent) and purified terephthalic acid (11 per cent). However, the prices of P.V.C. resin (6 per cent) and methanol (2 per cent) declined.

For the week ended March 7, the final WPI for ‘All Commodities’ stood at 227.7 points as compared to the provisional estimate of 226.7 points and annual rate of inflation based on final index, calculated on point to point basis, stood at 0.89 per cent as compared with 0.44 per cent points reported provisionally.

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