The Hindu Business Line : Inflation rate drops on cheaper agri products

New Delhi, Oct. 3 Inflation slowed to a 13-week low after remaining above the 12 per cent mark for 12 straight weeks. The annual Wholesale Price Index-based inflation rose 11.99 per cent in the week to September 20, lower than the 12.14 per cent growth a year earlier, with cereals, potatoes, onions, gram and urad, sugar and edible oils showing a decline in inflation levels, the Commerce Ministry said in a statement here on Friday.

Primary articles

The annual rate of inflation stood at 3.51 per cent during the corresponding week a year ago. During the latest reported week, the official WPI for ‘All Commodities’ for the latest week declined marginally to 241 points, from 241.1 points for the previous week.

In the ‘primary articles’ group, the annual point-to-point inflation declined to 11.29 per cent compared with 11.56 per cent reported last week. Out of a total of 98 articles, 16 articles have shown a decline in prices in the current week as compared with September 13, 2008.

Fuels cheaper

These included among others, rice, wheat, maize, gram, urad, potatoes, onions, groundnut and caster seed, rubber, black pepper, brinjal and papaya. Another 60 articles have shown no increase in prices.

In the commodity group ‘fuel and power’, the rate of inflation declined to 16.52 per cent compared with 16.66 per cent in the previous week. Prices of all the 19 commodities remained unchanged in the current week.

In the case of ‘manufactured products’, rate of inflation in the current week declined to 10.55 per cent compared with 10.61 per cent in previous weeks. Out of 318 commodities, a large number, 284 in all, have shown no increase in prices over the last week.

Vegoils rule easy

In the case of 12 commodities, there has been a decline in prices.

These commodities include rice bran, cottonseed, mustard, groundnut, coconut and imported edible oils; deoiled cake; sugar and khandsari; steel sheets, plates and strips; and suitcases.

Only 22 products, particularly MS bars and rounds; basic and foundry pig iron; lead and zinc ingots; acids; some items of iron and steel; pulp; map litho paper; truck and bus chassis; textile machinery parts; and safety matches witnessed an increase in prices.

Essential items

Inflation of 30 essential commodities increased to 7.70 per cent as on the week ending September 20, from 7.58 per cent reported in the earlier week. There was, however, a decline in the prices of cereals, gram and urad, sugar and edible oils.

The final index for the week ended July 26 stood at 240.7 points as compared to the provisional estimate of 239.6 points and annual rate of inflation based on final index, calculated on point to point basis, stood at 12.53 per cent as compared to 12.01 per cent points reported provisionally.

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