The Hindu Business Line : Inflation surges 8.94% for primary articles

New Delhi, Nov 5 The annual Wholesale Price Index-based inflation in primary articles rose 8.94 per cent for the week ended October 24, up from the previous week’s yearly rise of 8.67 per cent, with the index for food items up 13.39 per cent during the latest reported week.

The surge in food articles was led by potatoes, which recorded over 100 per cent year-on-year inflation, onions (50 per cent), pulses (24 per cent) and rice (12 per cent). Inflation in the fuel index dipped 6.2 per cent, the same as the week before, according to data released on Thursday by the Government under the new WPI series.

In line with the decision of the Cabinet Committee on Economic Affairs (CCEA), the weekly releases of WPI will henceforth cover only the primary articles and commodities in the fuels group. The Commerce and Industry Ministry said it will release the October monthly data for all commodities on November 12.

According to the latest data, the Primary Articles group index declined sequentially by 0.1 per cent to 273 points from 273.3 points for the previous week. The annual rate of inflation, calculated on point-to-point basis, stood at 8.94 per cent points for the latest week as compared to 8.67 per cent points for the previous week and 11.73 per cent during the corresponding week the previous year.

Food group

The index for the ‘Food Articles’ group declined by 0.3 per cent due to lower sequential inflation in the case of items such as fish-marine (3 per cent), fruits and vegetables (2 per cent) and barley and jowar (1 per cent each).

However, the prices of moong (3 per cent), wheat and bajra (2 per cent each) and condiments and spices and gram (1 per cent each) moved up.

The index for the ‘Non-Food Articles’ group rose by 0.2 per cent due to higher prices of raw silk (6 per cent), raw rubber (3 per cent) and castor seed, rape and mustard seed, raw cotton and copra (1 per cent each). However, the prices declined for raw wool (6 per cent) and linseed and groundnut seed (1 per cent each).

Fuel group

The Fuel, Power, Light and Lubricants index for this major group remained unchanged at its previous week’s level of 344.9 points. The annual rate of inflation, calculated on point-to-point basis, remained unchanged at its previous week’s level of (-) 6.2 per cent points for the latest reported week.

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