Inflation remains unchanged at 4.27 pc

New Delhi, July 22: The headline inflation rate remained unchanged at 4.27 per cent during the week ended July 7. It managed to stay below the psychological barrier of five per cent for the seventh consecutive week.

The annual inflation rate was 4.83 per cent during the corresponding week of the previous year, an official statement said.

Ahead of the Central Bank's monetary policy review on July 31, Union Finance Minister P Chidambaram had earlier said that high crude oil and food prices did not necessarily mean monetary policy would be further tightened, as these hikes could be absorbed through higher subsidy.

Mr Chidambaram, however, said the government would keep a close watch on the price situation.

The Wholesale Price Index (WPI) for all commodities for the week ended July 7, 2007 rose by 0.5 per cent to 212.6 from 212.5 for the previous week.

The index for Primary Food Articles declined by 0.3 per cent to 221 from 220.6 for the previous week.

The index for the Food Articles group declined by 0.9 per cent to 219.1 (Provisional) from 221 for the previous week due to lower prices of fruits and vegetables (seven per cent), poultry chicken (five per cent), moong (two per cent) and masur and bajra (one per cent each).

However, the prices of jowar and fish-marine (seven per cent each), condiments and spices (four per cent), gram (two per cent) and arhar, wheat and maize (one per cent) moved up.

The index for non-food articles group rose by 1.4 per cent to 207.5 (Provisional) from 204.7 for the previous week due to higher prices of sunflower (nine per cent), raw cotton and groundnut seed (three per cent each), gingelly seed (two per cent) and copra and cotton seed (one per cent each).

However, the prices of mesta and rape and mustard seed (one per cent) declined.

The index for fuel, power, light and lubricants group declined by 0.1 per cent to 321.8 (Provisional) from previous week's level of 322.1 (Provisional) due to lower prices of naptha (two per cent). However, the prices of aviation turbine fuel and furnace oil (two per cent) moved up.

The index for manufactured products rose by 0.2 per cent to 185.3 (Provisional) from 184.9 (Provisional) for the previous week.

The index for Food Products group rose by 0.6 per cent to 184.9 (Provisional) from 183.8 (Provisional) for the previous week due to higher prices of sunflower oil (four per cent), groundnut oil (three per cent), oil cakes, gur and cotton seed oil (two per cent each) and imported edible oil, rice bran oil and sugar (one per cent each).

However, the prices of bran (all kinds) and coconut oil (one per cent each) declined.

The index for Rubber and Plastic Products group declined by 0.2 per cent to 154.6 (Provisional) from 154.9 (Provisional) for the previous week due to lower prices of decorative laminates (eight per cent) The index for Chemicals and Chemicals Products group declined by 0.1 per cent to 201.9 (Provisional) from 202.1 (Provisional) for the previous week due to lower prices of benzene (six per cent) and purified terephthalic acid (pta) (three per cent).

The index for Non-Metallic Products group rose by 0.2 per cent to 206.1 (Provisional) from 205.7 (Provisional) for the previous week due to higher prices of cement (0.2 per cent).

The index for Basic Metals Alloys and Metal Products group rose marginally to 244.6 (Provisional) from 244.5 (Provisional) for the previous week due to higher prices of lead ingots (four per cent), other aluminium material (three per cent), foundry pig iron (two per cent each) and aluminum sheets and strips and zinc ingots (one per cent each).

However, the prices of aluminium bars and rods (three per cent) and aluminium ingots and steel sheets, plates and strips (one per cent each) declined.

The index for Paper and Paper Products group declined by 0.1 per cent to 192.7 (Provisional) from 192.8 (Provisional) for the previous week due to lower prices of mewsprint. ( The index for Machinery and Machine Tools group rose by 0.2 per cent to 165.8 (Provisional) from 165.4 (Provisional) for the previous week due to higher prices of enamelled copper wired (four per cent) and complete tractors (one per cent).

The index for Beverages Tobacco and Tobacco products group rose by 1.5 per cent to 264.9 (Provisional) from 260.9 (Provisional) for the week due to higher prices of bidi (eight per cent).

The index for the Textiles group rose by 0.1 per cent to 131.9 (Provisional) from 131.8 (Provisional) for the previous week due to higher prices of hessian and sacking bags (two per cent) and hessian cloth (one per cent).

UNI