The annual point-to-point inflation rate fell to 2.4 per cent for the week ended November 24. The wholesale price index (WPI) based inflation was at the same level for the week ended November 3.
After rising for two weeks, it fell again, despite a rise in the indices for primary articles and manufactured products. The index for fuels, however fell by 0.4 per cent during the week.
The fall in the WPI based inflation level is mainly due to the high base effect of last year's inflation. Inflation in the corresponding week in 2000 was 7.84 per cent. Next week onwards, the point-to point-inflation levels are expected to drop further, as the inflation level in December 2000 was over 8 per cent.
The inflation based on the final WPI for 'all commodities' (base 1993-94=100) for the week ended September 29 was 3.19 per cent as against 3.32 per cent reported on the basis of the provisional index. At a disaggregated level, the index for primary articles rose by 0.3 per cent, mainly due to an increase in the prices of food articles. The index for manufactured products rose by 0.1 per cent, on account of higher prices of 'food products' and paper products. The index for the major group of fuel, power, light and lubricants, however, fell by 0.4 per cent during the week.
Within the major group of primary articles, the food articles index rose by 0.5 per cent due to an 8 per cent increase in the prices of poultry chicken, 6 per cent for inland fish, 3 per cent for jowar, barley and marine fish and a 2 per cent rise in milk prices. The index for non-food articles, however, fell by 0.3 per cent due to a 2 per cent fall in the prices of groundnut seed and kardi seed. Raw cotton prices fell by 1 per cent, while raw jute prices went up by 5 per cent.
The index for the group of fuels fell on account of an 8 per cent fall in the prices of light diesel oil and naphtha and a 5 per cent fall in the prices of furnace oil. Kerosene prices, however, rose by 3 per cent during the week.
Within the manufactured products category, the index for food products rose by 0.4 per cent due to a 3 per cent rise in the prices of maida, sooji, atta and sunflower oil. The index for 'paper and paper products' rose by 0.2 per cent due to a 4 per cent rise in pulp prices. Motorcycle prices fell by 1 per cent, leading to a 0.1 per cent fall in the index for 'transport equipment and parts'.
