Inflation slips further to 5.16 per cent

New Delhi, Dec 15: With the central bank keeping a sharp eye on inflation, the annual inflation rate further slipped to 5.16 per cent for the week ended December 2 from 5.30 per cent during the previous week due to a decline in food and energy prices.

The inflation rate calculated on a point-to-point basis, stood at 4.44 per cent during the corresponding week of the previous year, according to official figures released here today.

Reserve Bank of India has said it is looking at liquidity, inflation and credit growth to see if it will have to take more steps to tighten monetary conditions.

''Everything depends on evolving circumstances... Have to look at inflation, liquidity and credit growth,'' RBI Deputy Governor Rakesh Mohan yesterday said.

Last week, RBI increased the cash reserve ratio by 50 basis points as part of its strategy to contain inflation.

The index for Fuel, Power, Light and Lubricants group declined by 1.9 per cent to 322.6 from 328.8 for the previous week due to lower prices of furnace oil (14 per cent), naphta (9 per cent), petrol (4 per cent) and aviation turbine fuel and high speed diesel oil (3 per cent each). However, the prices of lubricants (6 per cent) and bitumen (4 per cent) moved up.

The index for the Manufactured Products group rose by 0.2 per cent to 180.8 from 180.5 for the previous week.

The index for Food Products group rose by 0.4 per cent to 185.4 from 184.7 for the previous week due to higher prices of bran (oil kinds) (14 per cent), rape and mustard oil (6 per cent), sooji (rawa), atta and maida (4 per cent each) and groundnut oil (1 per cent).

However, the prices of gur (3 per cent), oil cakes (2 per cent) and ghee and khandsari (1 per cent each) declined.

The index for Beverages Tobacco and Tobocco Products group declined marginally to 242.4 from 242.5 for the previous week due to lower prices of potable country liquor (1 per cent).

The index for Textiles group declined by 0.6 per cent to 132.5 from 133.3 for the previous week due to lower prices of viscose filament yarn (6 per cent), synthetic yarn (3 per cent), texturised yarn (2 per cent) and hessian and sacking bags and hessian cloth (1 per cent each).

The index for Leather and Leather Products group rose by 2.1 per cent to 159.3 from 156.0 for the previous week due to higher prices of footwear western type (2 per cent).

The index for Chemicals and Chemical Products group declined by 0.1 per cent to 194.0 from 194.1 for the previous week due to lower prices of penicillin (19 per cent).

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

The index for Non-Metallic Mineral Products group declined by 0.1 per cent to 192.5 from 192.6 for the previous week due to lower prices of cement (-0.1).

The index for Basic Metal Alloys and Metal Products group rose by 0.1 per cent to 238.7 from 238.4 for the previous week due to higher prices of ordinary casting (7 per cent) and zinc ingots (1 per cent).

However, the prices of basic pig iron (1 per cent each) declined.

The index for Machine and Machine Tools group rose by 0.7 per cent to 157.4 from 156.3 for the previous week due to higher prices of jelly filled telephone cables (15 per cent), electric motor: phase one (9 per cent), electric motors: phase three and electric motors (3 per cent each) and gls lamps (1 per cent).

However, the prices of TV sets (colour) (15 per cent) declined.

The index for Transport Equipment and Parts group rose by 0.1 per cent to 163.2 from 163.1 for the previous week due to marginal rise in the prices of bicycles.

UNI

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