The Hindu Business Line : Inflation slows on cheaper food, energy

THE annual Wholesale Price Index-based inflation rose 4.49 per cent during the week ended October 22, slower than the previous week's annual rise of 4.71 per cent. The fall in the year-on-year inflation growth rate was largely on account of lower food and energy prices, according to Government data released here today. The inflation rate was at 7.44 per cent during the corresponding week of the previous year.

The Wholesale Price Index (WPI) remained unchanged at previous week's level of 197.7 points. The index was at 189.2 points a year ago.

On a disaggregated basis, the Primary Articles' group index declined 0.1 per cent to 196.7 points due to fall in prices of food articles, while non-food prices went up. The index was 192.1 points a year ago. A three per cent fall in naphtha prices pushed down the fuel, power, light and lubricants group index by 0.1 per cent to 314.7 points, even as bitumen prices went up by four per cent. The index was 282.4 points in the year-ago period. The Manufactured Products' group index rose by 0.1 per cent to 172 points due to costlier food, wood, chemicals, base metal and machinery. It was 167.4 points in the previous year period.

Among the Primary Articles' group, the Food Articles' group index was down 0.2 per cent to 197.9 points owing to lower prices of vegetables (3.5 per cent), maize (three per cent), poultry chicken (two per cent), fruits, bajra and ragi (one per cent each). But, prices moved up for coffee (34 per cent), fish-marine (seven per cent), urad (six per cent), barley (two per cent) and moong and eggs (one per cent each).

The Non-Food Articles' group index rose 0.1 per cent to 181.7 points due to higher prices of niger seed (two per cent) and fodder (one per cent). However, prices declined for copra (two per cent) and gingelly seed, cottonseed and safflower (one per cent each).

Among the Manufactured Products' group, the Food Products' group index rose by 0.6 per cent to 177.9 points due to higher prices of unblended black tea (seven per cent), coffee powder (five per cent), rice bran oil (three per cent) and cakes and sweet roles and gur (one per cent each), but unrefined oil became cheaper by one per cent.

A one per cent hike in prices of timber planks pushed up the Wood and Wood Products' group index by 0.3 per cent to 180.5 points. The index for Chemicals and Chemical Products' group was up by 0.1 per cent to 187.8 points owing to rise in prices of phenol (three per cent) and acid (two per cent).

Lower prices of cement pushed down the Non-Metallic Mineral Products' group by 0.2 per cent to 169.9 points. The Base Metals Alloys and Metal Products' group index was up 0.1 per cent to 222.7 points due to higher prices of zinc (four per cent), zinc ingots and lead ingots (three per cent each) and pipes and tubes (one per cent).

The index for Machinery and Machine Tools' group rose by 0.1 per cent to 148 points due to higher prices of dry cell (three per cent) and other pumps (one per cent).

The Government revised upward inflation figure to 3.33 per cent for the week ended August 27, from a provisional 3.01 per cent, while WPI stood corrected at 195.5 points as against the earlier estimate of 194.9 points.

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