Inflation moves southward to 4.80 per cent

New Delhi, June 17: The headline inflation further dipped to 4.80 per cent for the week ended June 2 from 4.85 per cent a week ago on account of a decline in food and energy prices.

The annual inflation rate was 4.88 per cent during the corresponding week of the previous year, an official statement said here.

Last week, for the first time in eight months the inflation rate fell below the five per cent level at 4.85 per cent due to cheaper food articles.

The Reserve Bank of India aims to keep inflation close to five per cent this fiscal, and bring it down to 4.0-4.5 per cent over the medium term.

However, increasing demand resulting from a 9.4 per cent economic growth during 2006-07 could still result in price rise if the supply side does not grow in proportion, Finance Minister P Chidambaram said earlier.

The Wholesale Price Index (WPI) for all commodities for the week ended June 2, 2007 rose by 0.1 per cent to 211.9 from 211.7 for the previous week.

The index for Primary Food Articles declined to 220.4 from 220.5 for the previous week.

The index for the Food Articles group declined by 0.1 per cent to 220.3 from 220.5 for the previous week due to lower prices of condiments and spices, moong and bajra (1 per cent each).

However, the prices of gram (1 per cent each) moved up.

The index for Non-Food Articles group rose by 0.1 per cent to 204.9 from 204.6 for the previous week due to higher prices of raw silk (3 per cent), rape and mustard seed (2 per cent) and sunflower, raw tobacco and groundnut seed (1 per cent each).

However, the prices of raw rubber (5 per cent) and copra (1 per cent) declined.

The index for fuel, power, light and lubricants group declined marginally to 321.9 from 322.0 for the previous week due to fall in the prices of aviation turbine fuel (2 per cent) and furnance oil (1 per cent). The index for manufactured products group rose by 0.2 per cent to 184.4 from 184.1 for the previous week.

The index for food products group rose by 0.1 per cent to 183.2 from 183.0 for the previous week due to higher prices of bran (6 per cent), soyabean oil (5 per cent), imported edible oil and gingelly oil (2 per cent each) and rice bran oil, gur and oil cakes (1 per cent each).

However, the prices of sooji (rawa) (3 per cent), atta and khansari (2 per cent each) and maida and cotton seed oil (1 per cent each) declined.

The index for beverages tobacco and tobacco products group rose by 0.6 per cent to 260.8 from 259.2 for the previous week due to higher prices of cigarettes (2 per cent).

The index for paper and paper products group declined by 0.1 per cent to 192.8 from 193.0 for the previous week due to lower prices of duplex board (4 per cent).

The index for textiles group rose by 0.3 per cent to 132.5 from 132.1 for the previous week due to higher prices of synthetic yarn and texturised yarn (3 per cent each) and cotton yarn-cones (1 per cent).

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

The index for chemicals and chemicals products rose by 0.1 per cent to 199.9 from 199.8 for the previous week due to higher prices of tooth paste and bopp film (2 per cent each).

The index for basic metal alloys and metal products group declined marginally to 245.1 from 245.5 for the previous week due to lower prices of pipes and tubes (3 per cent) and steel sheets, plates and strips and zinc ingots (1 per cent each).

However, the prices of other iron steel and lead ingots (5 per cent each) and ms bars and rounds (1 per cent) moved up.

The index for machinery and machine tools group rose by 0.7 per cent to 164.7 from 163.5 for the previous week due to higher prices of other cables (9 per cent), other electrical equipment and systems (5 per cent), p.v.c insulated cables (3 per cent), rubber insulated cables (2 per cent) and components and accessories of switch gears and enamelled copper wires (1 per cent each).

UNI