Lower mineral-machinery prices drop inflation

New Delhi, July 7: The annual rate of inflation today slided down from its above 5 per cent mark for the past two consecutive weeks, to 4.84 per cent for the week ended June 24, despite a rise in prices of food items.

The inflation rate declined due to lower prices of minerals and machinery from its one-year high at 5.44 per cent for the previous week.

The rate of inflation, calculated on point-to-point basis, stood at 4.30 per cent during the corresponding week of the previous year, according to official figures released here.

The Wholesale Price Index (WPI) for all commodities for the week ended June 24, rose by 0.1 per cent to 203.6 from 203.4 for the previous week.

In order to keep the domestic prices in check, the government on Monday extended the ban imposed on export of sugar and pulses until the end of this financial year in March 2007.

The government had, last month, banned the export of pulses and eased the norms for import of sugar and wheat as part of measures to check rising prices of essential commodities. Pulses, sugar and wheat are the three commodities being closely monitored by the government to ensure steady prices.

The index for the Primary Articles group rose by 0.2 per cent to 205.7 from 205.2 for the previous week.

The index for Food Articles group rose marginally to 208.8 from 208.7 for the previous week due to higher prices of tea (5 per cent), ragi (3 per cent), maize and bajra (2 per cent each) and moong, gram and eggs (1 per cent each).

However, the prices of barley (1 per cent) declined.

The index for Non-Food Articles group rose by 0.9 per cent to 183.2 from 181.5 for the previous week due to higher prices of logs and timber (24 per cent) and sunflower (2 per cent).

However, the prices of raw rubber (3 per cent) declined.

The index for Fuel, Power, Light and Lubricants remained unchanged at its previous week's level of 326.4. The index for Manufactured Products group rose by 0.1 per cent to 175.5 from 175.4 for the previous week. The index for Food Products rose by 0.2 per cent to 179.4 from 179.1 for the previous week due to higher prices of oil cakes, ghee, sooji (rawa) and maida (1 per cent each).

The index for Chemicals and Chemical Products group rose by 0.2 per cent to 193.5 from 193.2 for the previous week due to higher prices of benzene( 15 per cent), pvc resins (13 per cent), purified terephthalic acid (pta) (9 per cent) and causyic soda (sodium hydroxide) (3 per cent).

However, the prices of acid (all kinds)(5 per cent) declined.

The index for Basic Metal Alloys and Metal Products group declined marginally to 222.1 from 222.2 for the previous week due to lower prices of lead ingots ( 6 per cent) and zinc ingots (1 per cent).

The index for Machinery and Machine Tools group declined by 0.1 per cent to 151.6 from 151.7 for the previous week due to lower prices of complete tractors (1 per cent).

However, the prices of boilers, its parts and accessories (3 per cent) moved up.

UNI