Inflation tops 6pc mark, PM expresses concern

New Delhi, Feb 4: The headline inflation rate once again breached the upper limit of the RBI of 5.5 per cent to stand at 6.11 per cent for the week ended January 20, second time in the past three weeks on account of higher prices of manufactured products and foods.

Looking at the rising inflation rate, Prime Minister Manmohan Singh yesterday said bringing down inflation was his ''government's priority'' while Finance Minister P Chidambaram said steps are being taken to contain it.

''The present inflation is the result of high growth,'' Mr Chidambaram said on Friday expressing confidence that ''the government will gain mastery in dealing with it''.

The annual rate of inflation, calculated on a point-to-point basis, slowed down to 5.95 per cent for the week ended January 13 while it stood at 4.24 per cent during the corresponding week of the previous year.

Concerned at the surging inflation which was recorded at a two-year high of 6.12 per cent a fortnight ago, the Reserve Bank of India this week hiked the short-term repo rate by 25 basis points to 7.5 per cent to infuse liquidity in the system.

The Wholesale Price Index (WPI) for all commodities for the week ended January 20, rose by 0.1 per cent to 208.5 from 208.3 for the previous week.

The index for the Primary Articles group rose by 0.2 per cent to 213.7 from 213.2 for the previous week.

The index for Food Articles group rose by 0.4 per cent to 214.6 from 213.8 for the previous week due to higher prices of egg and condiments and spices (4 per cent), arhar (2 per cent) and moong, jowar, fruits and vegetables, maize, masur and fish-marine (1 per cent each).

However, the prices of bajra (3 per cent) and fish-inland, ragi and wheat (1 per cent) declined.

The index for Non-Food articles group rose by 0.3 per cent to 195.0 from 194.4 for the previous week due to higher prices of castor seed (10 per cent), raw wool (2 per cent) and sugarcane and raw tobacco (1 per cent each).

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

The index for Minerals group declined by 2.0 per cent to 422.2 from 430.6 for the previous week due to lower prices of ochre (14 per cent), magnesite (8 per cent), iron ore (4 per cent) and fire clay (3 per cent). However, the prices of chromite (67 per cent), steatite (24 per cent), barytes (12 per cent), gypsum (8 per cent) and kaolin (china clay) (4 per cent) moved up.

The index for Fuel, Power, Light and Lubricants group declined by 0.1 per cent to 322.1 from 322.3 for the previous week due to lower prices of furnace oil (1 per cent).

The index for Manufactured Products group rose by 0.1 per cent to 181.4 from 181.2 for the previous week.

The index for Food Products group rose by 0.4 per cent to 188.4 from 183.6 for the previous week due to higher prices of oil cakes (4 per cent), unrefined oil and rice bran oil (2 per cent each) and imported edible oil (1 per cent).

However, the prices of rape and mustard oil (3 per cent) and khandsari (1 per cent) declined.

The index for Textiles group rose by 0.2 per cent to 133.4 from 133.2 for the previous week due to higher prices of hessian cloth (4 per cent) and sacking bags (2 per cent).

The index for Paper and Paper Products group rose by 0.2 per cent to 193.3 from 192.9 for the previous week due to higher prices of newspaper (2 per cent) and map litho paper (1 per cent).

The index for Basic Metal Alloys and Metal Products group rose by 0.1 per cent to 240.4 from 240.1 for the previous week due to higher prices of barrels (5 per cent), tin boxes/containers (3 per cent), aluminium ingots and other iron steel (2 per cent each) and steel sheets, plates and strips, ms bars and rounds, foundary pig iron and basic pig iron (1 per cent each).

However, the prices of zinc (6 per cent) and zinc ingots and lead ingots (1 per cent each) declined.

The index for Machinery and Machine Tools group rose by 0.1 per cent to 159.7 from 159.5 for the previous week due to higher prices of hydraulic machine (30 per cent) and hydraulic pumps (1 per cent).

However, the prices of complete engines (1 per cent) declined.

The index for Transport Equipment and Parts group declined by 0.2 per cent to 163.0 from 163.4 for the previous week due to lower prices of broad gauge passenger carriage (3 per cent).

UNI