Cheaper food articles bring inflation to 4.36 pc

New Delhi, Aug 5: The inflation rate softened to 4.36 per cent for the week ended July 21, from 4.41 per cent for the week ended July 14, due to a fall in the prices of food articles.

The annual inflation rate was 4.72 per cent during the corresponding week last year, an official statement said.

It managed to stay below the psychological barrier of five per cent for the ninth consecutive week.

Following the review of Central Bank's Monetary Policy, Finance Minister P Chidambaram has said the country's healthy banking sector will be able to absorb the marginal impact on profitability, owing to the measure to fight inflation.

''Banking sector has to bear (the CRR hike) and help fight inflation,'' he said.

The Wholesale Price Index (WPI) for all commodities for the week ended July 21, 2007 rose by 0.1 per cent to 213.1 from 212.9 for the previous week.

The index for Primary Food Articles rose by 0.1 per cent to 222.8 from 222.5 for the previous week.

The index for the Food Articles group declined by 0.1 per cent to 220.7 (Provisional) from 220.9 for the previous week due to lower prices of eggs (six per cent), mutton (four per cent), fish-marine (three per cent) and gram, maize, condiments and spices and moong (one per cent each).

However, the prices of fruits and vegetables, coffee and pork (one per cent each) moved up.

The index for Non-Food Articles group rose by 0.8 per cent to 210.1 (Provisional) from 208.4 for the previous week due to higher prices of sunflower (seven per cent), copra (three per cent), groundnut seed (two per cent) and raw cotton and rape and mustard seed (one per cent each).

However, the prices of logs and timber (two per cent) and gingelly seed (one per cent) declined.

The index for Minerals group declined by 1.1 per cent to 448.3 from 453.5 for the previous week due to lower prices of ochre (20 per cent), fire clay (18 per cent), barytes (seven per cent) and iron ore (one per cent).

However, the prices of vermiculite (two per cent) and steatite (one per cent) moved up.

The index for fuel, power, light and lubricants group rose marginally to 321.9 from 321.8 for the previous week due to higher prices of furnance oil (two per cent).

However, the prices of naphtha (one per cent) declined.

The index for Manufactured Products group rose by 0.1 per cent to 185.5 from 185.3 for the previous week.

The index for Food Products group rose by 0.4 per cent to 185.8 (Provisional) from 185.0 (Provisional) for the previous week due to higher prices of coffee powder (seven per cent), coconut oil, imported edible oil, oil cakes and groundnut oil (two per cent each) and khandsari and cotton seed oil (one per cent each).

However, the prices of gingelly oil (two per cent) declined.

The index for the Textiles group rose by 0.5 per cent to 132.7 (Provisional) from 132.1 (Provisional) for the previous week due to higher prices of viscose stable fibre (four per cent) and cotton year-cones and polyster staple fibre (one per cent each), However, the prices of synthetic yarn and texturised yarn (one per cent each) declined.

The index for Chemicals and Chemicals Products group declined by 0.1 per cent to 201.6 (Provisional) from 201.8 (Provisional) for the previous week due to lower prices of epoxy resigns (19 per cent).

However, the prices of organic pigments (13 per cent) and p.v.c resigns (two per cent) moved up.

The index for Non-Metallic Mineral Products group rose by 0.1 per cent to 206.3 (Provisional) from 206.5 (Provisional) for the previous week due to marginal fall in the prices of cement.

The index for 'Basic Metals Alloys and Metal Products' group rose by 0.2 per cent to 245.0 (provisional) from 244.6 (provisional) for the previous week due to higher prices of lead ingots (six per cent), foundary pig iron and basic pig iron (three per cent each) and zinc ingots (one per cent).

However, the prices of other iron steel (seven per cent) and steel sheets, plates and strips (two per cent) declined.

The index for Machinery and Machine Toools group declined by 0.1 per cent to 165.7 (provisional) from 165.8 (provisional) for the previous week due to lower prices of flurescent tubes (15 per cent), airconditioners (four per cent) and glass lamps (two per cent).

The index for Transport Equipment and Parts group declined by 0.1 per cent to 164.0 (provisional) from 164.2 (provisional) for the previous week due to lower prices of jeeps (four per cent).

UNI