Higher prices of food push inflation to 4.92 pc

New Delhi, Aug 25: The annual rate of inflation rose to 4.92 per cent for the week ended August 12, as compared to 4.82 per cent the previous week on account of increase in food, manufactured product prices.

The inflation rate, calculated on point-to-point basis, stood at 3.67 per cent during the corresponding week of the previous year, according to official figures released here today.

Finance Minister P Chidambaram today said inflation rate will remain below 5 per cent in the financial year 2006-07, to ensure ample liquidity to keep interest softer.

The Wholesale Price Index (WPI) for all commodities for the week ended August 12, 2006, rose by 0.2 per cent to 204.7 from 204.3 for the previous week.

The index for the Primary Articles group rose by 0.5 per cent to 203.6 from 202.5 for the previous week.

The index for Food Articles group rose by 0.5 per cent to 204.8 from 203.7 for the previous week due to higher prices of fruits and vegetables (2 per cent) and condiments and spices (1 per cent).

However, the prices of poultry chicken (2 per cent) and masur (1 per cent) declined.

The index for Non-Food Articles group also rose by 0.5 per cent to 184.7 from 183.8 for the previous week due to higher prices of raw rubber (6 per cent), niger seed (5 per cent) and raw cotton and groundnut seed (1 per cent each).

However, the prices of raw silk (7 per cent), raw jute (5 per cent) and soyabean (1 per cent) declined.

The index for Fuel, Power, Light and Lubricants group remained unchanged at its previous week's level of 328.4. The index for Manufactured Products group rose by 0.1 per cent to 177.4 from 177.2 for the previous week. The index for Food Products group declined by 0.1 per cent to 180.8 from 181.0 for the previous week due to lower prices of salt (17 per cent), oil cakes (2 per cent), and gur (1 per cent).

However, the prices of imported edible oil (5 per cent), rice bran oil (4 per cent) and gingelly oil and groundoil oil (1 per cent each) moved up.

The index for Textiles group rose by 0.4 per cent to 131.1 from 130.6 for the previous week due to higher prices of polyster staple fibre (3 per cent) and cotton yarn-cones and hessian&sacking bags (1 per cent each).

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

The index for paper and paper products group rose by 0.1 per cent to 189.1 from 188.9 for the previous week due to higher prices of duplex board (3 per cent) and cream laid woven paper (1 per cent).

The index for Chemicals and Chemical Products group declined by 0.1 per cent to 195.4 from 195.5 for the previous week due to lower prices of liquid nitrogen (2 per cent) and liquid chlorine and caustic soda (1 per cent each).

However, the prices of synthetic resins (9 per cent) moved up.

The index for Non-Metallic Minerals Products group rose by 0.1 per cent to 188.7 from 188.6 for the previous week due to higher prices of building bricks (2 per cent).

The index for Basic Metal Alloys and Metal Products group rose by 0.6 per cent to 230.6 from 229.2 for the previous week due to higher prices of ingots (23 per cent), steel ingots (plain carbon) (15 percent), zinc (5 per cent) and lead ingots (3 per cent).

UNI