Inflation tops 5 pc due to higher food prices

New Delhi, Oct 15: The annual rate of inflation rose to 5.16 per cent for the week ended September 30, as against 4.77 per cent in the previous week, owing to higher food and manufactuerd product prices.

The inflation rate calculated on a point-to-point basis, stood at 4.61 per cent during the corresponding week of the previous year, according to official figures released here.

The Reserve Bank of India had earlier suggested combining the four consumer price indices (CPIs) to capture a more accurate picture of the economy.

The Wholesale Price Index (WPI) for all commodities for the week ended September 30, 2006, rose by 0.6 per cent to 207.8 from 206.6 for the previous week.

The last time the inflation rate crossed the 5 per cent mark was during the week ended August 26, at 5.01 per cent.

''As the current CPIs do not provide changes in prices for the entire rural and urban population, there is a need to compile the CPI separately for the entire rural and urban population,'' the central bank said in a discussion paper on construction of a harmonised index of consumer prices (HICP).

Analysts expect that the Reserve Bank of India may not raise the key interest rates during the quarterly review of the credit policy, scheduled later this month, if the inflation rate remains within 5 per cent.

The index for the Primary Articles group marginally to 212.4 from 212.3 for the previous week.

The index for Food Articles group rose by 0.3 per cent to 215.7 from 215.1 for the previous week due to higher prices of eggs (3 per cent), gram and bajra (2 per cent each) and fruit and vegetables, urad and arhar (1 per cent each).

However, the prices of fish-marine (4 per cent) and moong, maize and condiments and spices (1 per cent each) declined.

The index for Non-Food Articles group declined by 0.6 per cent to 187.2 from 188.4 for the previous week due to lower prices of raw jute and raw cotton (3 per cent each) and niger seed and copra (1 per cent each).

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

The index for the Fuel, Power, Light and Lubricants group rose by 1.2 per cent to 328.9 from 324.9 for the previous week due to higher prices of electricity (4 per cent), naphtha (2 per cent) and bitumen (1 per cent).

The index for Manufactured Products group rose by 0.5 per cent to 179.2 from 178.3 for the previous week. The index for Food Products group rose by 0.6 per cent to 182.8 from 181.7 for the previous week due to higher prices of coconut oil (4 per cent), ghee and oil cakes (3 per cent each), ground nut oil (2 per cent) and rape and mustard oil and gingelly oil (1 per cent each).

However, the prices of gur (4 per cent), imported edible oil (2 per cent) and rice bran oil and unrefined oil (1 per cent each) declined.

The index for Textiles group rose by 0.1 per cent to 133.9 from 133.7 for the previous week due to marginal increase in the prices of cotton yarn and jute, hemp and mesta textiles.

The index for Paper and Paper Products group rose by 0.2 per cent to 191.1 from 190.8 for the previous week due to higher prices of kraft paper and m g poster paper (1 per cent each).

The index for Rubber and Plastic Products group rose by 0.1 per cent to 151.4 from 149.7 for the previous week due to higher prices of cycle tubes (14 per cent) and cycle tyres (4 per cent).

The index for Chemicals and Chemical Products group rose by 0.1 per cent to 193.1 from 193.0 for the previous week due to higher prices of safety matches (5 per cent).

The index for Basic Metal Alloys and Metal Products group rose by 0.9 per cent to 235.9 from 233.9 for the previous week due to higher prices of ms/ss ingots (27 per cent), nickel alloy (19 per cent) and lead ingots and zinc ingots (1 per cent each).

The index for Machinery and Machine Tools group rose by 1.1 per cent to 154.2 from 152.5 for the previous week due to higher prices of jelly filled telephone cables (37 per cent) and p v c insulated cables (3 per cent).

The index for Transport Equipment and Parts group rose by 0.1 per cent to 162.9 from 162.7 for the previous week due to higher prices of bicycles (2 per cent).

UNI