Cheaper food products bring inflation down to 5.06 %

New Delhi, Jun 1 (UNI) The annual rate of inflation further softened to 5.06 per cent for the week ended May 19 from 5.27 per cent a week ago, due to a statistical base effect and decline in some food product prices.

The headline inflation rate was 5.05 per cent during the corresponding week of the previous year, according to official data issued here today.

Finance Minister P Chidambaram has said high economic growth might put pressure on inflation, especially prices of essential commodities, if supply did not match the growing demand.

''India aims to bring down inflation to 4.0-4.5 per cent.

Inflation had come down in the recent weeks and the government was keeping a watch,'' he added.

The Wholesale Price Index (WPI) for all commodities for the week ended May 19 rose by 0.1 per cent to 211.9 from 211.7 for the previous week.

The index for the primary articles group rose by 0.2 per cent to 221.1 from 220.7 for the previous week.

The index for food articles group rose by 0.1 per cent to 221.6 from 221.3 for the previous week due to higher prices of arhar (2 per cent) and maize, fruits and vegetables and barley (1 per cent each).

However, the prices of moong (2 per cent) and ragi, urad and wheat (1 per cent each) declined.

The index for non-food articles group rose by 0.3 per cent to 204.1 from 203.4 for the previous week due to higher pices of niger seed (17 per cent), safflower (kardi seed) (10 per cent), raw rubber (4 per cent) and linseed, groundnut seed, cotton seed and copra (1 per cent each).

However, the prices of raw wool (8 per cent) and raw cotton and raw jute (1 per cent) declined.

The index for minerals rose by 0.1 per cent to 420.3 from 419.8 for the previous week due to higher prices of magnesite (18 per cent), barytes (6 per cent) and steatite (4 per cent).

However, the prices of fire clay (6 per cent) and fluorite ( 4 per cent) declined.

The index for fuel, power, light and lubricants group rose by 0.1 per cent to 322.0 from 321.8 for the previous week due to higher prices of bitumen (2 per cent).

The index for manufactured products rose by 0.1 per cent to 184.1 from 184.0 for the previous week.

MORE UNI