Inflation rises to 3.75 per cent

New Delhi, Dec 16: Inflation rate for the week ended December 1 rose to 3.75 per cent as against 3.01 per cent last week on account of higher prices of primary articles.

The annual inflation rate was 5.36 per cent during the corresponding week of the previous year, an official statement said here today.

Reserve Bank of India has fixed a target to keep inflation below three per cent in the medium term to make the economy ready for full capital account convertibility, its Deputy Governor Rakesh Mohan said yesterday.

The wholesale price index (WPI) for 'All Commodities' for the week ended December 1 rose by 0.3 per cent to 216.0 (Provisional) from 215.4 (Provisional) for the previous week.

The index for primary articles rose by 0.3 per cent to 223.3 (Provisional) from to 222.7 (Provisional) for the previous week.

The index for 'Food Articles' group rose by 0.2 per cent to 222.3 (Provisional) from 221.8 (Provisional) for the previous week due to higher prices of bajra (three per cent), fruits and vegetables, and spices and condiments (one per cent each).

However, the prices of fish-marine (one per cent) declined.

The index for 'Non-Food Articles' group rose by 0.4 per cent to 209.9 (Provisional) from 209 (Provisional) for the previous week due to higher prices of copra (seven per cent), gingelly seed (three per cent), raw cotton (two per cent) and groundnut seed and castor seed (one per cent).

However, the prices of raw rubber (six per cent) and raw tobacco (two per cent) declined.

The index for 'Fuel, Power, Light and Lubricants' group rose by 0.8 per cent to 328.6 (Provisional) from 326.1 (Provisional) for the previous week due to higher prices of aviation turbine fuel (16 per cent), naphtha (nine per cent) and bitumen (six per cent).

The index for 'Manufactured Products' group rose by 0.1 per cent to 188.3 (Provisional) from 188.2 (Provisional) for the previous week.

The index for 'Food Products' group declined by 0.2 per cent to 191.6 (Provisional) from 192.0 (Provisional) for the previous week due to lower prices of rice bran oil (nine per cent), khandsari (two per cent) and maida (one per cent).

However, the prices of coconut oil and gingelly oil (two per cent each) and groundnut oil, oil cakes and imported edible oil (one per cent each) moved up.

The index of 'Textiles' group rose by 0.1 per cent to 132.3 (Provisional) from 132.2 (Provisional) for the previous week due to higher prices of texturised yarn (two per cent).

The index for 'Chemicals and Chemical Products' group rose by 0.1 per cent to 204.9 (Provisional) from 204.6 (Provisional) for the previous week due to higher prices of acid (all kinds) (four per cent).

The index for 'Non-Metallic Mineral Products' group declined marginally to 210.3 (Provisional) from 210.4 (Provisional) for the previous week due to marginal fall in the prices of cement.

The index for 'Basic Metals Alloys&Metal Products' group rose by 0.3 per cent to 247.9 (Provisional) from 247.2 (Provisional) for the previous week due to higher prices of bright bars (five per cent), zinc ingots and foundary pig iron (three per cent each), basic pig iron (two per cent) and other iron steel, lead ingots, and bars and rods (one per cent each.

However, the prices of pipes and tubes (two per cent) declined.

The index for 'Machinery&Machine Tools' group rose by 0.1 per cent to 167.7 (Provisional) from 167.6 (Provisional) for the previous week due to marginal rise in the prices of complete tractors.

UNI