Inflation static at 6.52 %

After continuously increasing in the last three weeks, the annual rate of inflation, remained static at 6.52 per cent for the week ended July 17. This is despite an increase in the prices of essential primary articles and manufactured products.

The price level measured in terms of wholesale price index (WPI) was at 6.52 per cent in the previous week and 4.65 per cent during the corresponding week of the last year.

The official wholesale price index for all commodities for the week ending July 17, 2004 rose by 0.1 per cent to 184.7, mainly on account of a 0.3 per cent rise each in prices of primary articles and 0.1 per cent in case of manufactured products. Fuel prices, however, dipped by 0.2 per cent.

The final wholesale price index for the week ended May 22 stood at 182.2 against the provisional figure of 181.9. The annual rate of inflation based on final index, calculated in a point to point basis stood at 5.20 per cent compared with the provisional 5.02 per cent. Index for food articles group remained unchanged at its previous week's level of 183.3 (provisional).

However, prices of bajra, maize, jowar, arhar and fish, along with barley, ragi, moong, urad and fish-marine went up during the week, while prices of eggs, tea, fruits and vegetables declined. Eggs were cheaper by 4 per cent, tea (3 per cent) and fruits, vegetables, condiments and spices (1 per cent each).

Non-food articles group index rose to 194.6 from 192.5 mainly due to higher prices of sunflower (10 per cent), niger seed (6 per cent), castor seed (5 per cent), soyabean (3 per cent), rape and mustard seed, raw cotton, raw wool (1 per cent each). Only safflower was cheaper by 2 per cent.

The mineral group index dipped to 146.9 from 148.5 due to cheaper barytes (27 per cent), chromite (14 per cent), bauxite (9 per cent) and vermiculite (5 per cent).

However, prices of magnesite went up by 21 per cent, while steatite was costlier by 3 per cent. Index for fuel, power, light and lubricants index to 274.4 from 274.9 due to fall in prices of bitumen, naphtha and furnace oil.

Manufactured products index rose to 164.4 from 164.3, mainly due to the rise in prices of textiles, tobacco, machinery and machine tools and rubber, although food products and chemicals became cheaper.