Costly food items speed inflation to 4.45pc

New Delhi, Aug 12: Costly food articles and manufactured products pushed inflation to 4.45 per cent for the week ended July 28 from 4.36 per cent in the previous week.

Inflation has increased despite RBI's continued insistance that it has pushed up the CRR and interest rates to check it. The Central Bank in its quarterly review of the monetary policy raised mandatory cash deposits of banks by 0.5 per cent to suck out Rs 16,000 crore out of the banking system.

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

Inflation at 4.45 per cent is within RBI's expectation of five per cent for this fiscal and even its projection of 4-4.5 per cent in the medium term.

The Wholesale Price Index (WPI) for all commodities for the week ended July 28, 2007 rose by 0.1 per cent to 213.4 from 213.1 for the previous week.

The index for Primary Food Articles rose by 0.3 per cent to 223.4 from 222.8 for the previous week.

The index for the Food Articles group rose by 0.5 per cent to 221.8 (Provisional) from 220.7 for the previous week due to higher prices of eggs ( two per cent), mutton (four per cent), and fruits and vegetables, masur and bajra (one per cent).

However, the prices of gram (one per cent) declined

The index for Non-Food Articles group declined by 0.2 per cent to 209.7 (Provisional) from 210.1 (Provisional) for the previous week due to lower prices of sunflower (seven per cent), skins (raw) and groundnut seed (two per cent each) and raw cotton ( one per cent).

However, the prices of raw rubber( 15 per cent) soyabean (two per cent) and castor seed and rape and mustard seed (one per cent each) moved up.

The index for Manufactured Products group rose by 0.1 per cent to 185.7 (Provisional) from 185.5 (Provisional for the previous week. The index for Food Products group rose by 0.6 per cent to 186.9 (Provisional) from 185.8 (Provisional) for the previous week due to higher prices of coffee powder (29 per cent), baby food (all kinds) (18 per cent), sooji (rawa) (four per cent) and maida and atta (two per cent each).

However, the prices of sunflower oil and cotton seed oil (two per cent each ) and imported edible oil, groundnut oil and rice bran oil (one per cent each) declined.

The index for Beverages Tobacco and Tobacco Products group declined by 0.1 per cent to 264.7 (Provisional) from 264.9 (Provisional) for the previous week due to lower prices of beer and alcohol (three per cent).

The index for Chemicals and Chemicals Products group rose by 0.1 per cent to 201.9 (Provisional) from 201.6 (Provisional) for the previous week due to higher prices of acid (all kinds) (six per cent), liquid chlorine (five per cent) and varnishes (two per cent).

However, the prices of phenol (six per cent) declined.

The index for 'Basic Metals Alloys and Metal Products' group declined by 0.2 per cent to 244.5 (provisional) from 245.0 (provisional) for the previous week due to lower prices of aluminium bars and rods (six per cent), other aluminium material (five per cent), aluminium sheets and strips (three per cent) and aluminium ingots (two per cent).

However, the prices of pipes and tubes (two per cent) and lead ingots and zinc ingots (one per cent each) moved up.

The index for Machinery and Machine Toools group rose by 0.1 per cent to 165.8 (provisional) from 165.7 (provisional) for the previous week due to higher prices of printing machine and switch gears (three per cent each).

UNI