Inflation further sinks to 5.44 per cent

New Delhi, May 20: The headline inflation rate dipped for the second consecutive time to 5.44 per cent for the week ended May 5 from 5.66 per cent the previous week.

The annual rate of inflation, calculated on a point-to-point basis, stood at 4.37 per cent during the corresponding week of the previous year, according to official figures issued here.

''In the next couple of months, we will bring it down to the level of 5 per cent from the existing 5.5 per cent,'' Prime Minister Manmohan Singh said.

There are some concerns on the price rise but prices will be controlled, Dr Singh said on Friday.

''I am not happy with inflation... We are willing to take further fiscal steps to contain inflation, if members so suggest,'' Finance Minister P Chidambaram said.

He said the government was aiming to bring down inflation below 5 per cent and later down to somewhere between 4-4.5 per cent, which has been indicated as the tolerance level by the Reserve Bank of India (RBI).

Mr Chidambaram said the government was taking steps to augment supplies of food items, and attributed the increase in prices to higher demand, capital flows, commodity prices and public spending.

The Wholesale Price Index (WPI) for all commodities for the week ended May 5 rose by 0.2 per cent to 211.4 from 210.9 for the previous week.

The index for the primary articles group rose by 0.4 per cent to 219.6 from 218.8 for the previous week.

The index for food articles group rose by 0.7 per cent to 219.8 from 218.3 for the previous week due to higher prices of eggs (8 per cent), fish-marine (5 per cent), masur (4 per cent), fruits and vegetables (3 per cent), jowar (2 per cent) and arhar, ragi and bajra (1 per cent each).

However, the prices of condiments and spices and moong (2 per cent each) and barley (1 per cent) declined.

The index for non-food articles group declined by 0.4 per cent to 203.3 from 204.2 for the previous week due to lower prices of niger seed (5 per cent), sunflower (3 per cent), raw cotton (2 per cent) and castor seed (1 per cent).

However, the prices of rape and mustard seed and linseed (1 per cent each) moved up.

The index for fuel, power, light and lubricants group rose by 0.4 per cent to 321.8 from 320.5 for the previous week due to higher prices of naphtha (7 per cent) and aviation turbine fuel (4 per cent).

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

The index for manufactured products rose by 0.1 per cent to 183.9 from 183.7 for the previous week.

The index for food products group declined by 0.7 per cent to 185.7 from 187.0 for the previous week due to lower prices of sooji (rawa), khandsari and oil cakes (3 per cent each), maida (2 per cent) and sugar, atta and bran (all kinds) (1 per cent each). However, the prices of salt (2 per cent) and rice bran oil, imported edible oil and butter (1 per cent each) moved up.

The index for beverages, tobacco and tobacco products group rose by 0.5 per cent to 257.6 from 256.3 for the previous week due to higher prices of cigarettes (2 per cent).

The index for textiles group declined by 0.2 per cent to 132.3 from 132.5 for the previous week due to lower prices of hessian cloth (4 per cent), cotton yarn-cones (2 per cent) and hessian and sacking bags (1 per cent).

However, the prices of cotton yarn-hanks (2 per cent) and other cotton yarn (1 per cent) moved up.

The index for leather and leather products group declined by 0.5 per cent to 164.7 from 165.5 for the previous week due to marginal fall in the prices of footwear (western type).

The index for rubber and plastic products group rose by 0.3 per cent to 151.9 from 151.4 for the previous week due to higher prices of cycle tubes (3 per cent) and cycle tyres (2 per cent).

The index for chemicals and chemical products group rose by 0.8 per cent to 199.0 from 197.5 for the previous week due to higher prices of household laundry soap and calcium ammonium nitrate n-content (15 per cent each), toilet soap and ointments (6 per cent each), super phosphate p205 content (4 per cent), synthetic detergent (3 per cent) and liquid injectables other than vitamins (2 per cent).

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

The index for non-metallic mineral products group rose marginally to 203.8 from 203.7 for the previous week due to marginal rise in the prices of cement.

The index for basic metals alloys and metal products group declined by 0.1 per cent to 242.4 from 242.7 for the previous week due to lower prices of basic pig iron and foundary pig iron (2 per cent each) and steel sheets, plates and strips (1 per cent).

However, the prices of zinc ingots (3 per cent), other iron steel (2 per cent) and lead ingots (1 per cent) moved up.

The index for machinery and machine tools group rose by 0.6 per cent to 163.2 from 162.2 for the previous week due to higher prices of pvc insulated cables (12 per cent) and electric motors: phase one (2 oer cent).

The index for transport equipment and parts group rose by 0.1 per cent to 163.6 from 163.5 for the previous week due to marginal rise in the prices of car chasis assembled and bicycles.

UNI