Inflation Drops To 5.65%

A decrease in the prices of food products and primary non-food items led to a fall in the annual rate of inflation to 5.65 per cent during the week ended May 24 from 5.90 per cent in the previous week and 1.49 per cent in the corresponding period last year.

According to provisional data released today, the wholesale price index (WPI) for all commodities, with 1993-94 as the base year, decreased 0.1 per cent to 172.1 during the week ended May 24 from 172.3 in the previous week.

The WPI for the week ended March 29 was revised to 172.3 compared to the provisional data of 171.9, while the final inflation for the week was 6.49 per cent, against the provisional level of 6.24 per cent.

 

While fuel, power, light and lubricant index remained unchanged during the week ended May 25, the primary articles group registered a 0.4 per cent drop and the manufactured products index also declined 0.1 per cent.

Fuel, power, light and lubricants group index was estimated at 246.2 during the week ended May 24, compared to 230.4 in the corresponding period last year.

The index for primary articles, dropped 0.4 per cent to 180.6 from 181.4 in the previous week. Within the category, the index of non-food articles dropped 0.8 per cent to 184.9 due to lower prices of oil seeds, raw cotton, soyabean and raw rubber.

Primary food articles were also cheaper this week with the index for this product category decreasing 0.3 per cent to 180.9 for the week ended May 24 from 181.4 in the previous week. Prices of fruits, vegetables and marine fish registered a decrease.

The index for manufactured products' group fell 0.1 per cent to 152.6. compared to 152.7 in the previous week, due to a 0.3 per cent decrease in the prices of food products whose index dropped to 162.5 during the week ended May 24.

The other product categories which registered a decrease in prices included machinery and machine tools, non-metallic mineral products and transport equipment. Prices of textiles items(0.2 per cent), chemicals and chemical products (0.1 per cent) and basic metals, alloys and metal products increased during the week ended May 24.