The Hindu Business Line : Inflation falls to 3.08 pc

NEW DELHI: Inflation fell for the fifth consecutive week to 3.08 per cent in the week ended August 20 from 3.13 per cent a week ago, mainly due to cheaper non-food items and some edible oils.

The point-to-point Wholesale Price Index (WPI) based inflation fell to 3.08 per cent during the third week of August from 8.46 per cent a year ago, indicating base year effect.

The WPI was up to 194.3 points as all the major indexes -- primary articles, fuel and manufactured products group rose. It was 188.5 points a year ago.

The government revised upward the inflation figure to 4.30 per cent for the week ended June 25 from the provisional 4.14 per cent while the WPI stood corrected at 194.2 points as against the earlier estimate of 193.9 points.

During the week, world oil prices climbed to $64 a barrel after shedding almost $5 as Ecuador suspended crude exports, underscoring market jitters over tight global supply.

The domestic prices were yet to be impacted by spiraling global oil prices as petroleum product prices were not raised fearing adverse effect.

Primary Articles' group index rose by 0.2 per cent to 191.3 points as food articles became costlier while non-food prices declined. The index was 192.3 points a year ago.

The index for Food Articles' group was up by 0.4 per cent to 193.2 points due to rise in prices of vegetables (five per cent), condiments & spices (2 per cent) and gram (1 per cent).

However, prices fell for bajra, ragi and tea (2 per cent each) and milk (1 per cent).

Non-Food Articles' group index declined by 0.3 per cent to 181.7 points owing to lower prices of raw rubber (6 per cent), skins (3 per cent), castor seed, copra and cotton seed (2 per cent each) and raw silk and raw tobacco (1 per cent each).

But prices increased for fodder (4 per cent), raw jute (3 per cent) and safflower and niger seed (2 per cent).

Fuel, Power, Light and Lubricants group index rose marginally to 304 points due to one per cent hike in furnace oil prices. The index was 279.6 points in the year ago period.

Manufactured Products' group index was up to 170.7 points as prices rose for food, tobacco, textiles, non-metallic mineral, basic metals, machinery and transport equipment. The index was 166.8 points in the year ago period.

Two per cent increase in oil cakes prices pushed up the food articles' group index by 0.2 per cent to 177 points, even as rice bran oil became cheaper by one per cent.

Ten per cent spurt in prices of zerda pushed up the beverages and tobacco products' group index by 0.3 per cent to 222.9 points.

Textiles group index was up to 128.7 points due to higher prices of cotton yarn-hanks (4 per cent) and viscose filament yarn (1 per cent). But prices declined for texturised yarn (5 per cent) and cotton yarn-cones (1 per cent).

Chemicals and chemical products' group index was down to 186.1 points owing to lower prices of ampicillin trihydrate (8t per cent) and bopp film (5 per cent).

Marginal increase in cement prices pushed up the index for non-metallic mineral products' to 167 points.

The index for basic metals alloys and metal products' rose to 220.4 points due to higher prices of blooms and billets & slabs (5 per cent each) and also zinc (2 per cent).

But prices fell for cr coils (8t per cent), skelp (7 per cent), cr sheets (6 per cent), mild steel & tensile plates (4 per cent) and wire (1 per cent).

Six per cent increase in electrical relays pushed up the machinery and machine tools' group index to 146.8 points.

One per cent hike in diesel bus chassis pushed up the transport equipment and parts group index to 159.8 points. - PTI

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