Cheaper food products bring inflation to 5.06pc

New Delhi, June 3: 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.

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.

The index for food products group declined by 0.4 per cent to 183.8 from 184.5 for the previous week due to lower prices of processed tea (9 per cent), khandsaari (4 per cent), sugar (2 per cent) and butter and gur (1 per cent each). However, the prices of malted food (15 per cent) and groundnut oil (1 per cent) moved up.

The index for beverages tobacco and tobacco products group rose by 0.6 per cent to 259.2 from 257.6 for the previous week due to higher prices of zerda (22 per cent).

The index for textiles group declined by 0.1 per cent to 132.1 from 132.2 for the previous week due to lower prices of hessian and sacking bags (3 per cent) and tyre cord fabric (1 per cent).

However, the prices of cotton grey cloth and canvas (3 per cent) moved up.

The index for rubber and plastic products group rose by 0.1 per cent to 153.0 from 152.8 for the previous week due to higher prices of decorative laminates (3 per cent).

The index for chemicals and chemicals products group rose by 0.4 per cent to 199.9 from 199.1 for the previous week due to higher prices of enamels (7 per cent), thinners (5 per cent), liquid oral other than vitamins (3 per cent) and tablets except vitamin and penicilin and hair oil (1 per cent each).

The index for non-metallic mineral products group rose by 0.1 per cent to 204.0 from 203.8 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 244.2 from 244.5 for the previous week due to lower prices of aluminium ingots and aluminium extrusion (6 per cent each), zinc, other aluminium material and zinc ingots (3 per cent each) and aluminium rolled products and lead ingots (1 per cent each).

However, the prices of basic pig iron and foundry pig iron (4 per cent each), ms bars and rounds (2 per cent) and other iron steel and steel sheets, plates and strips ( 1 per cent each) moved up.

The index for machinery and machine tools group rose by 0.1 per cent to 163.8 from 163.6 for the previous week due to highr prices of acsr conductors (14 per cent) and batteries (2 per cent).

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

The index for transport equipment and parts group rose by 0.2 per cent to 164.0 from 163.7 for the previous week due to higher prices of automobiles spare parts (4 per cent).

UNI