Cheap poultry chicken,eggs,tea push inflation to 4.06 pc

New Delhi, Apr 2: Lower prices of essential food items like eggs, poultry chicken, fish, tea and fruits and vegetables along with cheaper edible oil and textiles pushed the annual rate of inflation to 4.06 per cent, for the week ended March 18, as against 4.28 per cent during the previous week.

The inflation rate, calculated on point-to-point basis, was 5.45 per cent during the corresponding week last year.

The Wholesale Price Index (WPI) for all commodities declined by 0.1 per cent to 197.4 from 197.5 for the previous week.

The final WPI, for the week ended January 21, stood at 196.5 as against 197.0 and the annual rate of inflation based on final index stood at 4.24 per cent as compared to 4.51 per cent.

India's inflation is running below the Reserve Bank of India's projection for 5-5.5 per cent at the end of the fiscal year on March 31.

While global crude prices jumped by over 30 per cent last year, the Government allowed domestic prices of petrol and diesel to rise by only 15 per cent, to prevent higher fuel costs from affecting economic growth.

The Reverse Repo rate, or the rate at which the central bank absorbs money from the market, is currently at 5.5 per cent and the Repo Rate, at which the central bank pumps money into the banking system, is at 6.5 per cent.

The index for primary articles declined by 0.6 per cent to 192.0 from 193.1 for the previous week.

The index for the Food Articles group went down by 0.5 per cent to 193.8 from 194.7 for the previous week due to lower prices of poultry chicken (7 per cent), tea (6 per cent). moong and fish-inland (2 per cent each) and fruits and vegetables, eggs and pork (1 per cent each).

However, the prices of jowar, arhar and wheat (1 per cent each) climbed up.

The index for the Non-Food Articles group declined by 0.9 per cent to 174.6 from 176.1 for the previous week due to lower prices of fodder (5 per cent), raw cotton (4 per cent), raw rubber (3 per cent), safflower (kardi seed) and copra (2 per cent each) and castor seed, linseed and mesta (1 per cent each).

However, the prices of gingelly seed (1 per cent), raw silk (1 per cent) moved up.

The index for the major group of fuel, power, light and lubricants rose by 0.5 per cent to 316.3 from 314.7 for the previous week due to higher prices of bitumen (9 per cent), furnace oil (5 per cent) and naptha (4 per cent).

The index for the manufactured products group remained unchanged at its previous week's level of 172.8.

The index for the Food Products group went down by 0.4 per cent to 180.6 from 181.4 for the previous week due to lower prices of coconut oil (3 per cent), rapeseed and mustard oil, biscuits and rice bran oil (2 per cent each) and oil cakes and sugar (1 per cent each).

However, the prices of skimmed milk powder (4 per cent), sugar and sweetmeat confectionery (3 per cent) and baby food (all kinds) (2 per cent) moved up.

The index for the Beverages. Tobacco&Tobacco Products group rose by 1.3 per cent to 235.5 from 232.4 for the previous week due to higher prices of cigarettes (4 per cent). However, the prices of scented chewing tobacco (1 per cent) declined.

The index for the Textiles group went down by 0.1 per cent to 130.3 from 130.4 for the previous week due to lower prices of hessian cloth.

The index for Paper and Paper Products group rose by 0.8 per cent to 184.6 from 183.2 the previous week due to higher prices of kraft paper (6 per cent) and m.g. poster paper (2 per cent).

The index for the Chemicals and Chemical Products group went down by 0.3 per cent to 188.8 from 189.3 due to lower prices of acids (all kinds) (6 per cent) and liquid nitrogen (3 per cent). However, the prices of ayurvedic medicine liquids (2 per cent) moved up.

The index for Non-Metallic Mineral Products group declined by 0.1 per cent to 179.7 from 179.9 for the previous week due to lower prices of building bricks (3 per cent) and ceramic tiles (1 per cent).

The index for the Basic Metals Alloys and Metal Products group declined marginally to 213.1 from 213.2 for the previous week due to lower prices of ferro manganese (37 per cent) and steel wire (2 per cent).

However, the prices of other iron steel (4 per cent), steel sheets, plates and strips (3 per cent), ms bars and rounds, foundary pig iron and basic pig iron (2 per cent each and zinc ingots (1 per cent) went up.

The index for Machinery and Machine Tools group rose by 0.9 per cent to 148.8 from 147.5 for the previous week due to higher prices of PVC insulated cables (16 per cent) and other electrical equipment and systems (8 per cent).

UNI