Inflation at 3.24 pc due to cheaper food, textiles, rubber

New Delhi, Apr 21: Cheaper food items, textiles and rubber products pushed the annual rate of inflation down to 3.24 per cent for the week ended April 8, as against 3.51 per cent during the previous week.

The inflation rate, calculated on point-to-point basis, stood at 5.86 per cent during the corresponding week of the previous year, according to official figures released here today.

The Wholesale Price Index (WPI) for all commodities for the week ended April 8, went down by 0.1 per cent to 197.6 from 197.7 for the previous week.

The rate is in line with market expectations after Finance Minister P Chidambaram earlier indicated that inflation would be around 3.96 per cent.

Earlier this week, the Reserve Bank of India (RBI) in its credit policy did not announce any major changes in the repo and reverse repo rates and the cash reserve ratio (CRR).

The central bank projected an inflation rate of 5-5.5 per cent for this fiscal, but admitted that reining in inflation would continue to pose a challenge to the monetary policy due to volatile global oil prices.

RBI Governor Dr Y V Reddy has also refuted speculation that inflation was being kept under artificial check due to political compulsions.

Currently, India's inflation is running below the Reserve Bank of India's projection of 5-5.5 per cent.

The index for the Primary Articles group went down by 0.3 per cent to 195.1 from 195.7 for the previous week.

The index for Food Articles group declined by 0.6 per cent to 197.9 from 199.0 for the previous week due to lower prices of eggs (20 per cent), wheat (3 per cent), fruits and vegetables (2 per cent) and pork, bajra and fish-inland (1 per cent each). However, the prices of mutton and moong (4 per cent each), masur, urad and fish-marine (3 per cent each) and arhar, gram, maize and barley ( 1 per cent each) went up.

The index for Non-Food Articles group rose by 0.2 per cent to 175.2 from 174.8 for the previous week due to higher prices of raw cotton (2 per cent).

However, the prices of fodder (1 per cent) went down.

The index for the Fuel, Power, Light and Lubricants group remained unchanged at its previous week's level of 316.7 per cent.

The index for the Manufactured Products group went up by 0.1 per cent to 171.9 from 171.8 for the previous week.

The index for Food Products group rose by 0.1 per cent to 177.9 from 177.7 for the previous week due to higher prices of biscuits (4 per cent) and oil cakes (2 per cent).

However, the prices of unblended black tea leaf gr (4 per cent) and gur, khandsari, gingelly oil and groundnut oil (1 per cent each) went down.

The index for Textiles group declined by 0.6 per cent to 130.4 from 131.2 for the previous week due to lower prices of polyster staple fibre (3 per cent), cotton yarn-cones (2 per cent) and cotton yarn-hanks, hessian, and sacking bags, hessian cloth and acrylic yarn (1 per cent).

However, the prices of other cotton yarn (5 per cent) moved up.

The index for Rubber abd Plastic Products group went down by 1.1 per cent to 140.2 from 141.7 for the previous week due to lower prices of motor tyres (5 per cent), tractor tyres (3 per cent) and giant tyres (2 per cent).

However, the prices of giant tubes (1 per cent) moved up.

The index for Chemicals and Chemical Products group rose by 0.1 per cent to 189.0 from 188.9 for the previous week due to higher prices of powder/granules other than vitamins (5 per cent), calcium ammonium nitrate n-content (3 per cent), liquid nitrogen (2 per cent) and soda ash (sodium carbonate) (1 per cent).

However, the prices of organic pigments (4 per cent) went down.

The index for Non Mettalic Mineral Products group went up by 1.0 per cent to 186.8 from 184.9 for the previous week due to higher prices of asbestos cement corrugated sheets (3 per cent) and cement (1 per cent).

The index for Basic Metals Alloys and Metal Products group rose by 0.5 per cent to 208.8 from 207.7 for the previous week due to higher prices of zinc (15 per cent), steel sheets, plates and strips (9 per cent), other iron steel (5 per cent), ms bars and rounds (4 per cent), foundry pig iron and basic pig iron (3 per cent each), and zinc ingots (1 per cent).

However, the prices of tin boxs/containers (4 per cent) and bolts and nuts (1 per cent) declined.

The index for Transport Equipment and parts group went down by 0.2 per cent to 160.1 from 160.4 for the previous week due to lower prices of car chassis (assembled) (1 per cent).

UNI