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Inflation Rate Drops To 4.43%

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BSCAL
Last Updated : Jul 28 1997 | 12:00 AM IST

The annual rate of inflation fell further by 0.27 percentage points to touch 4.43 per cent for the week ended July 12, the lowest in last one year.

The inflation calculated on a point-to-point basis fell from 4.70 the previous week to the current level of 4.43 per cent. Compared to this, inflation was at 5.88 per cent in the corresponding week last year.

Inflation had fallen below the five-per-cent mark for the first time since last July last week.

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Meanwhile, the official wholesale price index (WPI) for all commodities (base 1981-82=100) rose 0.1 per cent to 325.2 (provisional) during the week as against 325.0 (provisional) the week before.

The annual rate of inflation based on the final index for the week ended may 17, 1997 stood at 5.8 per cent, as against six per cent for the week based on provisional index.

Interestingly, the rate of price rise based on consumer price index (CPI) for industrial workers (CPI-IW) also fell from 9.3 per cent in April to 7.32 per cent in May when WPI-based inflation was six per cent.

During the week, among the various major groups, the index for primary articles rose by 0.1 per cent to 336.1 from 335.6 while indices for fuel, power, light and lubricants and manufactured products remained unchanged at its previous weeks level of 349.2 and 313.5, respectively.

Among the commodities which saw substantial fluctuations during the week were: bright bars (down 12 per cent), benzene (down 10 per cent), ragi and masur (down 4 per cent each) and fodder (up 4 per cent).

Among primary articles, the food articles index rose 0.2 per cent to 385.6 from 384.8 due to costlier bajra (3 per cent), fruits and vegetables (2 per cent) and jowar, maize, urad and eggs (1 per cent each).

However, the prices of ragi and masur (-4 per cent each), bajra, arhar and condiments and spices (-2 per cent each) softened during the period under review.

The index for non-food articles also went up by 0.1 per cent to 335.8 from 335.6 due to higher prices of fodder (4 per cent) and copra (2 per cent).

The prices of raw cotton, rape and mustard seed, cottonseed, gingelly seed and castor seed (-1 per cent each) moved down during the week.

Among manufactured products the index for food products rose by 0.2 per cent to 321.1 from 320.4 due to the increased price of gur (1 per cent).

In textiles, the index fell marginally to 305.3 from 305.4 due to easing of prices of jute, hemp and mesta textiles (-1 per cent each).

The chemicals and chemicals products index went down by 0.2 per cent to 269.0 from 269.5 due to decline in prices of benzene (-10 per cent), vat dyes-indigo solubilised and others (-2 per cent) and paints except alum paints (-1 per cent).

However, the price of super phosphate p205 content (1 per cent) went up.

The non-metallic and mineral products index was up by 0.1 per cent to 348.4 from 348.0 due to marginal increase in the price of cement.

The basic metals, alloys and metal products index fell by 0.1 per cent due to softening of price of bright bars (-12 per cent).

Indices for all other group remained unaltered at their respective previous weeks levels.

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First Published: Jul 28 1997 | 12:00 AM IST

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