Cheaper food, fuel brings inflation down to 6.05 pc

New Delhi, Mar 4: Amidst concerns to tame the rising prices, theannual rate of inflation came sharply down to 6.05 per cent for theweek ended February 17 due to fall in prices of fuel and food items.

Finance Minister P Chidambaram asked the industry to hold theprice line saying that inflation could be moderated through fiscalsteps like duty cuts announced in the Budget 2007-08, monetary stepsundertaken by RBI and supply side augmentation.

''I urge you (industry) to cooperate with the government infighting inflation...Supply side must be augmented and price line tothe extent possible must be held,'' Mr Chidambaram said in apost-Budget interaction with the industry.

The inflation rate, calculated on a point-to-point basis, stood at6.63 per cent last week and 4.13 per cent during the corresponding weekof the previous year.

The Wholesale Price Index (WPI) for all commodities for the weekended February 17 declined by 0.3 per cent from 209.2 for the previousweek.

The index for the Primary Articles group declined by 0.4 per cent to 215.0 from 215.8 for the previous week.

The index for Food Articles group declined by 0.4 per cent to215.9 from 216.8 for the previous week due to lower prices offish-marine and gram (4 per cent each), fish-inland (3 per cent),fruits and vegetables and bajra (2 per cent each) and moong and jowar(1 per cent each).

However, the prices of poultry chicken (14 per cent), arhar (2 per cent) and barley, maze and wheat (1 per cent each) moved up.

The index for Non-Food articles group declined by 0.1 per cent to196.7 from 196.9 for the previous week due to lower prices of mesta (3per cent) and raw cotton, raw jute and copra (1 per cent each).

However, the prices of niger seed (3 per cent) and groungnut seed (1 per cent) moved up.

The index for 'Minerals' group declined by 1.3 per cent to 416.8 from422.2 for the previous week due to lower prices of fluorite (48 percent), fire clay (29 per cent), steatite (20 per cent), magnesite (13per cent), felsar (4 per cent), kaolin (china clay) (3 per cent) andiron ore (2 per cent). However, the prices of phosphorite (25 per cent)moved up.

The index for Fuel, Power, Light and Lubricants group declined by0.6 per cent to 318.9 from 320.8 for the previous week due to lowerprices of petrol (4 per cent), high speed diesel oil and light dieseloil (3 per cent each) and bitumen (2 per cent).

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

The index for Manufactured Products group declined by 0.1 per cent to 181.8 from 182.0 for the previous week.

The index for Food Products group declined by 0.4 per cent to184.2 from 185.0 for the previous week due to lower prices of rice branoil (4 per cent), khandsari (2 per cent) and imported edible oil,sugar, cotton seed oil and oil cakes (1 per cent each).

The index for Textiles group rose by 0.1 per cent to 133.7 from133.5 for the previous week due to higher prices of hessian cloth (2per cent) and hessian and sacking bags (1 per cent each).

The index for Chemicals and Chemicals Products group declined by0.1 per cent to 193.6 from 193.8 for the previous week due to lowerprices of acid (all kinds) (3 per cent), liquid chlorine (2 per cent)and caustic soda (sodium hydroxide) (1 per cent).

However, the prices of bopp film (3 per cent) moved up.

The index for Basic Metal Alloys and Metal Products group declinedby 0.1 per cent to 240.7 from 240.9 for the previous week due to lowerprices of zinc (10 per cent) and zinc ingots (4 per cent).

However, the prices of lead ingots and basic pig iron (2 per centeach) and foundary pig iron and steel sheets, plates and strips (1 percent each) moved up.

The index for Machinery and Machine Tools group rose by 0.1 percent to 161.4 from 161.3 for the previous week due to higher prices ofelectrical relays (4 per cent).

The index for Transport and Equipment and Parts group rose by 0.1per cent to 163.1 from 163.0 for the previous week due to marginal risein the prices of car chassis assembled.

UNI

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