Inflation moves up 4.96% despite lower food prices

New Delhi, July 16: The annual rate of inflation moved up to 4.96 per cent for the week ended July 1, from 4.84 per cent last week, despite a decline in the prices of food products.

The rise in inflation was largely on account of higher manufactured product prices.

The inflation rate, calculated on point-to-point basis, stood at 4.14 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 July 1, declined by 0.1 per cent to 203.3 from 203.6 for the previous week.

The government had imposed ban on export of sugar and pulses until the end of this financial year in March 2007.

Analysts said that inspite of the global and internal market conditions the Reserve Bank of India is unlikely to introduce another 25-basis point hike in the reverse repo rate at the forthcoming monetary policy review, on July 25.

The index for the Primary Articles group declined by 1.3 per cent to 203.0 from 205.7 for the previous week.

The index for Food Articles group declined by 1.9 per cent 204.9 from 208.8 for the previous week due to lower prices of fruits and vegetables (8 per cent), gram and masur (2 per cent each) and milk, tea and bajra (1 per cent each).

However, the prices of fishmarine (5 per cent) and condiments and spices (1 per cent) moved up.

The index for Non-Food Articles group rose by 0.1 per cent to 183.4 from 183.2 for the previous week due to higher prices of gingelly seed (8 per cent), raw rubber (2 per cent) and raw cotton and cotton seed (1 per cent each).

However, the prices of soyabean (5 per cent), copra (4 per cent) and castor seed (1 per cent ) declined.

The index for Fuel, Power, Light and Lubricants declined marginally to 326.3 from 326.4 for the previous week's due to lower prices of furnace oil. The index for Manufactured Products group rose by 0.3 per cent to 176.0 from 175.5 for the previous week. The index for Food Products declined by 0.1 per cent to 179.2 from 179.4 for the previous week due to lower prices of coconut oil (2 per cent) and khandsari and gingelly oil (1 per cent).

However, the prices of imported edible oil (1 per cent) moved up.

The index for Textiles group rose by 0.1 per cent to 130.9 from 130.8 for the previous week due to higher prices of of texturised yarn (4 per cent) and hessian and sacking bags and tyre cord fabric (1 per cent each).

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

The index for Paper and Paper products group rose by 0.1 per cent to 188.5 from 188.3 for the previous week due to higher prices of kraft peper (1 per cent).

The index for Chemicals and Chemical Products group rose by 0.2 per cent to 193.9 from 193.5 for the previous week due to higher prices of benzene( 14 per cent) and purified terephthalic acid (pta) (7 per cent).

However, the prices of synthetic resins declined.

The index for Basic Metal Alloys and Metal Products group rose by 1.7 per cent to 225.8 from 222.1 for the previous week due to higher prices of heavy light structurals (13 per cent), heavy rails (23 kg upwards) (7 per cent), other iron steel, angles, channels and sections and bars and rods (5 per cent each), steel sheets, plates and strips and ms bars and rounds (3 per cent each), pipes and tubes (2 per cent) and basic pig iron and foundary pig iron (1 per cent each).

However, the prices of zinc (2 per cent) declined.

The index for Transport Equipment and Parts group rose by 0.1 per cent to 161.1 from 160.9 for the previous week due to higher prices of scooters (2 per cent).

UNI