The Hindu Business Line : Inflation rate slips to 0.48; food articles rule dearer

New Delhi, June 4 The Wholesale Price Index-based inflation slowed in the fourth week of May, giving policymakers the option to expand measures to stimulate the economy further.

The annual WPI-based inflation rose 0.48 per cent during the week ended May 23, holding below 1 per cent for the twelfth straight week.

Tea costlier

The year-on-year inflation rate was recorded at 0.61 per cent in the preceding week and 8.9 per cent during the corresponding week of the previous year.

According to data from the Commerce and Industry Ministry, the official WPI for ‘All Commodities’ for the week ended May 23 rose to 232.3 points from 232.2 points for the previous week. On a disaggregated basis, the Primary Articles group index rose by 0.2 per cent as the index for ‘Food Articles’ group rose by 0.4 per cent due to higher inflation in case of tea (5 per cent), jowar (2 per cent), and eggs, maize, arhar, condiments and spices, fruits and vegetables and gram (1 per cent each).

Ragi, barley rule easy

However, the prices of ragi and barley declined (1 per cent each). The index for ‘Non-Food Articles’ group declined by 0.1 per cent to 234.5 points from 234.7 points for the previous week due to lower prices of gingelly seed (1 per cent). However, there was an increase in the prices of raw silk (7 per cent) and raw rubber (3 per cent).

The ‘Fuel and Power’ group remained unchanged at its previous week’s level of 324 points.

The ‘Manufactured Products’ group also remained unchanged at its previous week’s level of 203.5 points.

The groups and items for which the index showed variations during the week included the ‘Textiles’ group, which rose by 0.4 per cent due to higher prices of texturised yarn (9 per cent) and nylon filament yarn, hessian cloth and hessian and sacking bags (1 per cent each). The index for ‘Paper and Paper Products’ group rose by 0.1 per cent due to higher prices of other boards (all kinds) (2 per cent).

Leather products slip

The index for ‘Leather and Leather Products’ group declined by 0.7 per cent due to lower prices of footwear western type (1 per cent). The index for ‘Rubber and Plastic Products’ group declined by 0.6 per cent due to lower prices of injection moulded plastic items (4 per cent) and cycle tubes (2 per cent). The index for ‘Non-Metallic Mineral Products’ group rose by 0.7 per cent due to higher prices of cement (1 per cent).

Steel ingots up

The index for ‘Base Metals Alloys and Metal Products’ group declined marginally by 0.04 per cent due to lower prices of zinc (5 per cent) and zinc ingots and lead ingots (1 per cent each). However, the prices of steel ingots (1 per cent) moved up.

The index for ‘Machinery and Machine Tools’ group declined by 0.1 per cent due to lower prices of airconditioners (9 per cent).

The index for ‘Transport Equipment and Parts’ group declined by 0.3 per cent due to lower prices of truck chassis (diesel) (1 per cent).

For the week ended March 28, the final WPI for ‘All Commodities’ stood at 228.6 points as compared to the provisional estimate of 227.3 points and annual rate of inflation based on final index, calculated on point to point basis, stood at 0.84 per cent as compared to 0.26 per cent points.

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