Inflation down 4 per cent after 17 months

New Delhi, Sept 2: Lower prices of food and manufactured products managed inflation to go below the four per cent mark since April 2006, at 3.94 per cent for the week ended August 18 from the previous week's 4.10 per cent.

Meanwhile, the Reserve Bank of India (RBI) said the inflationary pressures could potentially persist for several reasons including spiralling global crude prices and domestic factors like expansion of money supply.

''There are concerns regarding the further hardening of international commodity prices, in particular, oil prices,'' RBI said.

The annual inflation rate was 5.12 per cent during the corresponding week last year, an official statement said.

The central bank was also of the opinion that the rate of inflation in the country remained higher compared to other emerging markets as also the advanced economies in 2006-07.

The Wholesale Price Index (WPI) for all commodities for the week ended August 18, 2007 rose by 0.1 per cent to 213.6 from 213.4 for the previous week.

The index for 'Primary Food Articles' rose by 0.5 per cent to 224.7 from 223.5 for the previous week.

The index for the 'Food Articles' group rose by 0.9 per cent to 223.7 (Provisional) from 221.8 for the previous week due to higher prices of fish inland (five per cent), masur (two per cent) and milk, fruits and vegetables, bajra and gram (one per cent each).

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

The index for 'Non-Food Articles' group declined by 0.1 per cent to 209.7 (Provisional) from 210.0 (Provisional) for the previous week due to lower prices of raw cotton, castor seed and groundnut seed (one per cent each).

However, the prices of tanning materials (77 per cent), hides (raw) (18 per cent), linseed and skins (raw) (four per cent each), sunflower and niger seed (two per cent each) and copra (one per cent) moved up.

The index for 'Fuel, Power, Light and Lubricants' group remained unchanged at its previous week's level of 322.1.

The index for Manufactured Products group declined by 0.1 per cent to 185.6 (Provisional) from 185.7 (Provisional) for the previous week.

The index for 'Food Products' group declined by 0.2 per cent to 186.3 (Provisional) from 186.7 (Provisional) for the previous week due to lower prices of rice bran oil and imported edible oil (2 per cent each) and cotton seed oil, khandsari and oil cakes (one per cent each). However, the prices of groundnut oil (one per cent) moved up.

The index for 'Textiles' group declined by 0.2 per cent to 132.3 (Provisional) from 132.6 (Provisional) for the previous week due to lower prices of tyre cord fabric (15 per cent), cotton grey drills and jeans (6 per cent), cotton shirtings (five per cent), mixed fabrics (four per cent) and terry cotton shirtings (three per cent).

However, the prices of hessian cloth (two per cent) moved up.

The index for 'Paper and Paper Products' group rose by 0.2 per cent to 194.4 (Provisional) from 194.1 (Provisional) for the previous week due to higher prices of mg poster paper (two per cent) and cream laid woven paper (one per cent).

The index for 'Chemicals and Chemicals Products' group rose by 0.1 per cent to 202.2 (Provisional) from 201.9 (Provisional) for the previous week due to higher prices of acid (all kinds) and titanium doixide (five per cent each), pvc resins and sulphur phosphate p205 content (three per cent each) and caustic soda (sodium hydroxide) (one per cent).

However, the prices of benzene (three per cent), liquid chlorine and resins (all kinds) (two each) and purified terephthalic acid and monocrotophos (one per cent each) declined.

The index for 'Basic Metals Alloys and Metal Products' group rose marginally to 243.8 (Provisional) from 243.7 (Provisional) for the previous week due to higher prices of ms bars and rounds (three per cent) and zinc, foundary pig iron and basic pig iron (one per cent each).

However, the prices of zinc ingots (three per cent) and lead ingots (one per cent) declined.

The index for 'Machinery and Machine Tools' group rose by 0.1 per cent to 165.7 (Provisional) from 165.6 (Provisional) for the previous week due to higher prices of excavator (four per cent), cranes (three per cent) and electric motors: phase three and other pumps (one per cent each).

UNI