The Hindu Business Line : Inflation rate drops 1.3%

The annual Wholesale Price Index-based inflation stayed in the negative territory for the third week in a row, falling 1.3 per cent for the week ended June 20 after tumbling 1.14 per cent the previous week.

The dip in the year-on-year inflation rate was recorded even as prices of food items such as fruits and vegetables rose compared with the same period last year.

Headline inflation during the corresponding week last year was recorded at 11.91 per cent.

The official WPI for ‘All Commodities’ for the latest reported week rose by 0.2 per cent to 234.6 points from 234.2 points for the previous week.

Primary articles group

On a disaggregated basis, the Primary Articles group index rose by 0.5 per cent as the index for ‘Food Articles’ group rose by 0.6 per cent due to higher inflation in case of fruits and vegetables (4 per cent) and arhar (1 per cent). However, the prices of fish-marine and tea (4 per cent each) and jowar (3 per cent) declined.

The index for ‘Non-Food Articles’ group rose by 0.3 per cent due to higher prices of fodder (4 per cent) and groundnut seed (2 per cent).

However, the prices of raw wool (4 per cent), raw silk and raw rubber (2 per cent each) and copra and linseed (1 per cent each) declined.

The Fuel and Power group rose by 0.1 per cent due to higher prices of naphtha (2 per cent).

Manufactured Products

The Manufactured Products group rose by 0.05 per cent as the index for ‘Food Products’ group rose marginally due to higher prices of cakes and sweet roles (9 per cent) and sugar (1 per cent).

However, the prices of rice bran oil (4 per cent) and imported edible oil and cotton seed oil (2 per cent each) declined.

The index for ‘Textiles’ group rose by 0.3 per cent due to higher prices of hessian cloth (6 per cent) and hessian and sacking bags (2 per cent).

The index for ‘Paper and Paper Products’ group rose by 0.5 per cent due to higher prices of news paper (5 per cent) and poster paper (1 per cent).

The index for ‘Rubber and Plastic Products’ group declined by 0.1 per cent due to lower prices of PVC fitting and accessories (3 per cent).

Chemicals & Chemical Products

The index for ‘Chemicals and Chemical Products’ group rose marginally due to higher prices of phenol (15 per cent) and PVC resins (5 per cent).

The index for ’Machinery and Machine Tools’ group declined by 0.2 per cent due to lower prices of PVC insulated cables (4 per cent). However, the prices of hydraulic pumps (1 per cent) moved up.

The index for ‘Transport Equipment and Parts’ group declined by 0.1 per cent due to marginal decline in the prices of other automobile spare parts.

For the week ended April 25, the final WPI for ‘All Commodities’ stood at 233.1 points as compared to the provisional estimate of 230.7 points while the annual rate of inflation based on final index, calculated on point to point basis, stood at 1.75 per cent, as compared to 0.70 per cent points reported provisionally.

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