Inflation declines to 4.68 per cent

New Delhi, June 11: The annual rate of inflation decreased to 4.68 per cent for the week ended May 27, as against 4.74 per cent during the previous week despite a rise in the prices of pulses and fruit and vegetables.

The inflation rate, calculated on point-to-point basis, stood at 5.25 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 May 27, rose by 0.1 per cent to 201.3 from 201.1 for the previous week.

The Reserve Bank of India yesterday raised interest rates on reverse repo by 25 basis points (bps) under the Liquidity Adjustment Facility to 5.75 per cent from 5.50 per cent.

This move is being viewed as a measure to contain inflation, as a rise in the domestic retail fuel prices threatened to fuel inflation.

The index for the Primary Articles group rose by 0.3 per cent to 200.2 from 199.7 for the previous week.

The index for Food Articles group rose by 0.3 per cent to 204.5 from 203.8 for the previous week due to higher prices of masur (5 per cent), eggs (3 per cent), condiments and spices (2 per cent) and arhar, gram, fruits and vegetables and maize (one per cent each).

However, the prices of moong (4 per cent) and bajra (1 per cent) declined.

The index for Non-Food Articles group rose by 0.1 per cent to 176.9 from 176.8 for the previous week due to higher prices of raw silk (4 per cent), cotton seed (2 per cent) and niger seed and groundnut seed (one per cent each).

The prices of raw cotton, however, declined by one per cent.

The index for Fuel, Power, Light and Lubricants group rose by 0.2 per cent to 320.4 from 319.7 for the previous week due to higher prices of bitumen (4 per cent), naptha (2 per cent) and furnance oil (1 per cent). The index for Manufactured Products group remained unchanged at its previous week's level of 175.1.

The index for Food Products declined by 0.2 per cent to 177.9 from 178.2 for the previous week due to lower prices of rice bran oil, oil cakes, sugar and gingelly oil (1 per cent each).

However, the prices of coconut oil (3 per cent), atta (2 per cent) and gur, khandsari and maida (1 per cent each) moved up.

The index for Textiles group declined by 0.2 per cent to 133.1 from 133.4 for the previous week due to lower prices of viscose staple fibre (3 per cent) and texturised yarn and hessian and sacking bags (one per cent each).

The index for Paper and Paper Products group declined by 0.1 per cent to 188.1 from 188.2 for the previous week due to marginal decline in the prices of White Printing Paper.

The index for Basic Metals Alloys and Metal Products group rose by 0.4 per cent to 222.3 from 22.1 5 for the previous week due to higher prices of narrow cr steel strips (25 per cent) and cr sheets (7 per cent).

However, the prices of lead ingots and zinc ingots (1 per cent) declined.

UNI