Inflation down to 6.13%

After rising for nine consecutive weeks, the wholesale price index-based inflation fell to 6.13 per cent for the week ending January 17 despite the rising prices of fruits and vegetables, milk and manufactured items like edible oils. Inflation was 6.21 per cent in the previous week.

The decline has been on account of the high base effect of the previous years' inflation, which had begun rising by mid-January 2003.

Inflation was 4.42 per cent in the corresponding week last year. The WPI-based inflation is expected to decline further in February and reach 4-4.5 per cent by the close of 2003-04.

The final inflation level for the week ended November 22 has been revised upwards to 5.48 per cent as against 5.24 per cent reported on the basis of the provisional index.

At a desegregated level, the indices for primary and manufactured products rose, while that for "fuel, power, lights and lubricants" remained unchanged at the previous week's level.

The index for primary articles rose 0.4 per cent because of rise in prices of non-food items and minerals, even as prices of many food articles remained firm.

The index for food articles remained unchanged despite a two per cent rise in prices of masur and one per cent rise in prices of fruits and vegetables.

Prices of bajra and poultry chicken, however, fell by 6 per cent, while ragi and coffee prices by 5 per cent each.

The non-food articles index shot up by 1.6 per cent due to a 7 per cent hike in sugarcane prices, two per cent rise in soyabean and castor seed prices and one per cent rise in prices of cotton seed, raw jute and niger seed.

Pirces of raw rubber declined by 3 per cent, of safflower by 2 per cent and of raw skins, sunflower, raw silk, rape seed, mustard seed and copra by one per cent each.

Mineral prices rose by 0.7 per cent due to a 71 per cent hike in ochre prices, 8 per cent rise in stealite prices, 7 per cent rise in bauxite prices and 5 per cent hike in chromite prices. Prices of barytes rose by 4 per cent and of magnesite by one per cent during the week.

Prices of fire clay, however, fell by 29 per cent and of gypsum by 3 per cent.The index for manufactured products rose by 0.1 per cent because of rise in prices of food products, chemicals, basic metals and transport equipment.

Items whose prices changed sharply include, processed tea, up 28 per cent, zinc up 8 per cent and heavy light structurals up 4 per cent. Prices of unrefined oil rose by 3 per cent, of oilcakes, gingelly oil, PVC resins, phenol and auto-rickshaws by 2 per cent each and of heavy rails and mopeds by 1 per cent. Prices of nylon filament yarn fell by 5 per cent.