Inflation rises to 4.11 pc, highest in 5 months

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{image-inflation+india1_10022008.jpg www.oneindia.com}New Delhi, Feb 8: The headline inflation rate for the week ended January 26 increased to 4.11 per cent, the highest in five months, compared to its previous week's level of 3.93 per cent. The annual inflation rate was 6.69 per cent during the corresponding week of the previous year, an official statement said.

According to policy makers inflation may accelerate on increased money supply caused by capital flows from overseas investors, seeking higher returns in India, where growth is almost three times that in the US, Europe and Japan. Reserve Bank of India Governor Y V Reddy has reiterated the warning about the dangers of inflation to the economy. ''Prices of non-administered petroleum products (naphtha, furnace oil, aviation fuel and the like) have increased in the range of 28-37 per cent,'' Mr Reddy said.

For Mr Reddy and the Reserve Bank overall, inflationary pressures have firmed up with implications of a rise in prices of food and fuel.

The wholesale price index for 'All Commodities' for the week ended January 26, rose by 0.2 per cent to 217.6 (Provisional) from 217.1 (Provisional) for the previous week.

The index for 'Primary Articles' rose by 0.4 per cent to 223.6 (Provisional) from 222.8 (Provisional) for the previous week.

The index for 'Food Articles' group rose by 0.2 per cent to 220.4 (Provisional from 219.9 (provisional)for the previous week due to higher prices of maize (three per cent) and moong, wheat, condiments and spices and bajra (one per cent each). However, the prices of barley (one per cent) declined.

The index for 'Non-Food Articles' group rose by 0.5 per cent to 215.1 (Provisional) from 214.1 (Provisional) for the previous week due to higher prices of raw cotton (two per cent) and castor seed and groundnut seed (one per cent each). However, the prices of copra (two per cent) declined.

The index for Minerals group rose by 2.1 per cent to 433.8 (Provisional) from 424.7 (Provisional) for the previous week due to higher prices of gypsum (62 per cent), lime stone (14 per cent), fire clay (10 per cent) and iron ore (one per cent). However, the prices of fluorite (seven per cent) and steatite (four per cent) declined.

The index for 'Fuel, Power, Light and Lubricants' group remained unchanged at its previous week's level 334.4 (Provisional). The index for 'Manufactured Products' group rose by 0.3 per cent to 189.4 (Provisional) from 188.9 (provisional) for the previous week. The index for 'Food Products' group rose by 0.2 per cent to 196.1 (Provisional) from 195.7 (Provisional) for the previous week due to higher prices of salt (five per cent), gingelly oil, unblended black tea leaf gr and bread&buns (three per cent each), and cattle feed, rape&mustard oil and gur (one per cent each).

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

The index for 'Textiles' group declined by 0.1 per cent to 128.4 (Provisional) from 128.5 (Provisional) for the previous week due to lower prices of viscose stable fibre (one per cent).

The index for 'Paper and Paper products' group rose by 0.1 per cent to 194.8 (Provisional) from 194.7 (Provisional) for the previous week due to marginal increase in the prices of newsprint.

The index for 'Leather and Leather products' group declined by 1.7 per cent to 164.4 (Provisional) from 167.3 (Provisional) for the previous week due to lower prices of footwear western type (two per cent).

The index for 'Chemicals and Chemical Products' group rose by 0.7 per cent to 206.9 (Provisional) from 205.5 (Provisional) for the previous week due to higher prices of carbon black (16 per cent), soda ash (sodium carbonate) (10 per cent), toilet soap (four per cent), synthetic rubber (four per cent), acid (all kinds) (two per cent), and caustic soda (sodium hydroxide) (one per cent).

The index for 'Basic Metals Alloys and Metal Products' group declined by 0.2 per cent to 247.6 (Provisional) from 248 (Provisional) for the previous week due to lower prices of brass, sheets and strips (12 per cent), zinc (four per cent), lead ingots (two per cent) and pipes&tubes and zink ingots (one per cent each).

The index of 'Transport Equipment and Parts' group rose by 2.5 per cent to 171.0 (Provisional) from 166.8 (Provisional) for the previous week due to higher prices of truck chassis (diesel) (10 per cent) and bus chassis (diesel) (six per cent).

UNI

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