Inflation rate on 2-year high at 6.12 per cent

New Delhi, Jan 21: In line with its upward trend and market expectations, the headline inflation rate stood at 6.12 per cent highest in two years, for the week ended January 6 due to higher food and energy prices.

Finance Minister P Chidambaram expressed concern at the inflation rate crossing 6 per cent and said an anti-inflationary strategy was being co-ordinated between the Ministeries of Finance, Agriculture and the Reserve Bank of India (RBI).

The inflation rate calculated on a point-to-point basis, breached the upper limit of the RBI last week to report at 5.58 per cent while it was 3.86 per cent during the corresponding period the previous year, according to official data released here.

''The spurt in the Wholesale Price Index year on year inflation from 5.58 to 6.12 is indeed a cause for concern. The Economic Division, Ministry of Finance, has analysed the reasons and it appears that the rise is largely attributable to what is called the 'base effect','' Mr Chidambaram said on Friday.

The Wholesale Price Index (WPI) for all commodities for the week ended January 6, rose by 0.05 per cent to 208.2 from 208.1 for the previous week.

The index for the Primary Articles group rose by 0.3 per cent to 213.1 from 212.5 for the previous week.

The index for Food Articles group rose by 0.2 per cent to 214.7 from 214.3 for the previous week due to higher prices of fruits and vegetables, maize, arhar and wheat (1 per cent each).

However, the prices of moong and condiments and soices (2 per cent each) declined.

The index for non-food articles group rose by 0.6 per cent to 191.8 from 190.7 for the previous week due to higher prices of groundnut seed (3 per cent), raw rubber (2 per cent) and cotton seed and rape and mustard seed (1 per cent seed).

However, the prices of niger seed (3 per cent), raw jute (2 per cent), copra and raw cotton (1 per cent each) declined.

The index for Fuel, Power, Light and Lubricants group rose by 0.1 per cent to 322.3 from 321.9 the previous week due to higher prices of aviation turbine fuel (5 per cent), furnace oil (2 per cent) and naphta (1 per cent). However, the prices of bitumen (2 per cent) declined. The index for the Manufactured Products group declined 0.1 per cent to 181.1 per cent from 181.2 for the previous week.

The index for Food Products group declined by 0.5 per cent to 184.6 from 185.6 for the previous week due to lower prices of unblended black tea leaf gr (5 per cent), rice bran oil, khandsari and gur (2 per cent each) and sugar, coconut oil and imported edible oil (1 per cent each).

However, the prices of groundnut oil (4 per cent), gingelly oil (2 per cent) and rape and mustard oil, sunflower oil and salt (1 per cent each) moved up.

The index for Textiles group rose by 0.6 per cent to 133.0 from 132.2 for the previous week due to higher prices of viscose staple fibre (1 per cent).

However, the prices of nylon filament yarn (3 per cent) and tyre cord fabric, hessian and sacking bags and cotton yarn-hacks (1 per cent) decilned.

The index for Paper and Paper Products group rose by 0.6 per cent to 193.4 from 192.3 for the previous week due to higher prices of kraft paper (3 per cent) and mg poster paper, printing paper white, map litho paper, cream laid woven paper and other boards (all kinds) (1 per cent each).

The index for Chemicals and Chemical Products group dclined by 0.3 per cent to 193.6 from 194.2 for the previous week due to lower prices of ayurvedic medicine liquids (14 per cent), calcium ammonium nitrate n-content (3 per cent) and tablets except vitamin and penicilin (2 per cent).

However, the prices of epoxy resins (26 per cent) and ointments (1 per cent) moved up.

The index for Non-Metallic Mineral Products group rose by 0.1 per cent to 192.5 from 192.4 for the previous week due to marginal rise in prices of firebricks.

The index for Basic Metal Alloys and Metal Products group declined by 0.1 per cent to 239.8 from 240.0 for the previous week due to lower prices of zinc (7 per cent), cast iron casting (5 per cent), zinc ingots (3 per cent) and lead ingots (1 per cent).

However, the prices of other iron steel (2 per cent), foundary pig iron, basic pig iron, ms bars and rounds and steel sheets, plates and strips (1 per cent) moved up.

The index for Machinery and Machine Tools group rose by 0.1 per cent to 159.2 from 159.1 for the previous week due to higher prices of sewing machines (4 per cent) and boilers, its parts and accessories (1 per cent).

UNI