Inflation rate in fuel prices slows to 12.66%.

Our Bureau

New Delhi, Aug. 12

Food inflation, based on the Wholesale Price Index (WPI), witnessed an upsurge during end-July, after having dipped for two straight weeks. The annual food inflation increased 11.40 per cent during the week ended July 31 from the previous week's year-on-year rise of 9.53 per cent, mainly on account of a surge in items such as milk and pulses, official data released on Thursday showed.

The increase in the fuel prices index, however, slowed to 12.66 per cent on an annual basis during the latest week as against 14.26 per cent recorded in the previous week.

The primary articles index gained 15.66 per cent compared with the previous week's 14.36 per cent.

On a sequential basis, the primary articles group index declined 0.1 per cent as the index for ‘food articles' group dipped by 0.2 per cent due to lower prices of fruits and vegetables, arhar, fish-marine, masur and bajra (one per cent each). However, the prices of coffee (three per cent), tea (two per cent) and condiments and spices (one per cent) moved up.

The index for ‘non-food articles' group was up 0.2 per cent due to higher prices of raw silk (four per cent), copra (two per cent) and raw rubber, gingelly seed, groundnut seed, cotton seed and tobacco (one per cent each). However, the prices of rape and mustard seed (one per cent) declined. The fuel index remained unchanged at its previous week's level, the data showed.

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(This article was published in the Business Line print edition dated August 13, 2010)
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