Inflation dips to 5.67%

Inflation, after rising for four consecutive weeks, fell marginally by 0.24% to 5.67% in the week ended April 30 mainly due to cheaper food and some of the manufactured products like edible oils.

The point-to-point wholesale price index (WPI) inflation fell from the previous week's level of 5.91% and it was 4.60% in the year ago period.

RBI had estimated inflation to be 5-5.5% during the current financial year, but was cautious in its outlook, saying it may get moderated by the conditions in the oil market, which remains tight.

The WPI rose by 0.1% to 192.1 points due to surge in the index of heavy-weighted manufactured products even as fuel prices remained unchanged. The index was 181.8 points in the year ago period.

During the week in review, world oil prices closed below $50 a barrel for the first time in more than two months on rising US supplies and slower economic growth.

Government revised upwards inflation to 5.46% during the week ended March 5 as compared to provisional estimate of 5.30%.

The WPI stood corrected at 189.2 points during the first week of March against provisional level of 188.9 points.

The index of primary articles' group was down by 0.1% to 188.5 points mainly due to cheaper food articles even as non-food items became costlier. The index was 185.8 points in the year-ago period.

Food articles' group index fell by 0.2% to 190.3 points due to lower prices for eggs (5%) and wheat and fruits (1% each), while prices of fish-marine and urad rose by 2% each and barley by 1%.

The index of non-food articles' group was up by 0.2% to 179.4 points due to costlier raw rubber (4%), sunflower and groundnut seed (2% each) and safflower and raw silk (1% each).

Prices, however, declined in the case of linseed and soyabean (3% each), castor seed and niger seed (2% each) and fodder (1% each).

Fuel, power, lights and lubricants' group index stood firm at the previous week's level of 293.2 points and it was 264.5 points in the previous year period.

The index of manufactured products' group rose by 0.2% to 170.8 points due to costlier food products, chemicals, non-metallic minerals, basic metals and transport equipment. The index was 162 points in the year-ago period.