Inflation rises further at 6.58% as food items get dearer

New Delhi, Feb 9: Even though the government took steps to curb rising prices, the annual rate of inflation continued its climb to stand at 6.58 per cent for the week ended January 27, highest in two years, as compared to 6.11 per cent last week due to higher food prices.

Finance Minister P Chidambaram said the government is committed to moderate the rising inflation with additional steps that would take some time to bring down prices.

He said prices of various commodities have come down after fiscal measures and the RBI's decision to increase repo rate by 0.25 per cent to 7.5 per cent and increased provisioning for certain sectors.

The rate of inflation, calculated on a point-to-point basis, was 4.04 per cent during the corresponding week of the previous year, according to official figures issued here.

The Wholesale Price Index (WPI) for all commodities for the week ended January 27, rose by 0.1 per cent to 208.8 from 208.5 for the previous week.

The index for the Primary Articles group rose by 0.6 per cent to 215.0 from 213.7 for the previous week.

The index for Food Articles group rose by 0.7 per cent to 216.1 from 214.6 for the previous week due to higher prices of beef and buffalo meat (9 per cent), poultry chicken, ragi, arhar, milk and moong (2 per cent each) and jowar, fish-marine and fruits and vegetables (1 per cent each).

However, the prices of gram (3 per cent) and condiments and spices (2 per cent) declined.

The index for Non-Food articles group rose by 0.5 per cent to 196.0 from 195.0 for the previous week due to higher prices of soyabean (5 per cent) and groundnut seed and sunflower (3 per cent each).

However, the prices of sufflower (kardi seed), rape and mustard seed and raw rubber (2 per cent each) and raw cotton, gingelly seed and castor seed (1 per cent each) declined.

The index for Fuel, Power, Light and Lubricants group remain unchanged at its previous week's level of 322.1. The index for Manufactured Products group remained unchanged at its previous week's level of 181.4. The index for Food Products group declined by 0.2 per cent to 184.4 for the previous week due to lower prices of bran (all kinds) (4 per cent), imported edible oil, khandsari, rice bran oil and coconut oil (2 per cent) and sunflower oil and sugar (1 per cent).

However, the prices of soyabean oil (9 per cent) and groundnut oil (1 per cent) moved up.

The index for Beverages Tobacco and Tobacco Product's group rose by 0.4 per cent to 250.4 from 249.4 for the previous week due to higher prices of aerated water (11 per cent) and soft drinks (all kinds) (3 per cent).

The index for Paper and Paper Products group declined by 0.1 per cent to 193.1 from 193.3 for the previous week due to marginal fall in the prices of printing paper white.

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 Rubber and Plastic Products group declined by 0.1 per cent to 151.5 from 151.7 for the previous week due to lower prices of giant tubes (10 per cent).

The index for Chemicals and Chemicals Products group declined by 0.1 per cent to 194.1 from 194.3 for the previous week due to lower prices of purified terephthalic acid (pta) (9 per cent) and bopp film (8 per cent).

The index for Non-Metallic Mineral Products group rose by 0.6 per cent to 193.4 from 192.3 for the previous week due to higher prices of bottles (10 per cent).

The index for Basic Metal Alloys and Metal Products group declined marginally to 240.3 from 240.4 for the previous week due to lower prices of zinc ingots (2 per cent) and pipes and tubes (1 per cent).

However, the prices of lead ingots (3 per cent) moved up.

The index for Machinery and Machine Tools group declined by 0.1 per cent to 159.6 from 159.7 for the previous week due to lower prices of roller bearings (4 per cent) and air and gas compressors (1 per cent).

UNI