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Inflation slips to 3.96 pc on low mfg product prices

Written by: Staff
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New Delhi, Apr 9: The annual rate of inflation decreased to 3.96 per cent for the week ended March 25 as against 4.06 per cent for the previous week, due to lower manufactured product prices.

The inflation rate stood at 5.10 per cent in the corresponding week of the previous year.

The rate was in line with market expectations after Finance Minister P Chidambaram said earlier in the week inflation would be 3.96 per cent.

The Wholesale Price Index (WPI) for all commodities declined by 0.2 per cent to 197.0 from 197.4 for the previous week.

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.

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 193.1 from 192.0 for the previous week.

The index for the Food Articles group went up by 0.8 per cent to 195.3 from 193.8 for the previous week due to higher prices of condiments and spices (3 per cent), moong, fish-inland, arhar and fruits and vegetables (2 per cent each) and urad, mutton, wheat, pork and gram (1 per cent each).

However, the prices of raw silk (16 per cent), sunflower (3 per cent) and cotton seed (1 per cent) declined.

The index for the Non-Food Articles group rose by 0.1 per cent to 174.7 from 174.6 for the previous week due to higher prices of mesta, rape and mustard seed and safflower (1 per cent). However, the prices of raw silk (16 per cent), sunflower (3 per cent) and cotton seed (1 per cent) moved down. The index for the major group of fuel, power, light and lubricants remain unchanged at its previous week's level of 316.3.

The index for the manufactured products declined by 0.6 per cent to 171.7 from 172.8.

The index for the Food Products group went down by 1.3 per cent to 178.3 from 180.6 for the previous week due to lower prices of unblended black tea leaf gr (23 per cent), soyabean oil (7 per cent) and unrefined oil, khandsari, coconut oil, biscuits and oil cakes (1 per cent each).

However, the prices of salt (8 per cent), rice bran oil (4 per cent) and gingelly oil (1 per cent) moved up.

The index for the Basic Metals Alloys and Metal Products group declined by 2.5 per cent to 207.8 from 213.1 for the previous week due to lower prices of heavy light structurals (18 per cent), heavy rails (13 per cent), bars and (8 per cent) and angles, channels and sections (5 per cent).

However, the prices of zinc ingots (4 per cent) moved up.

UNI

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