Inflation slips to 4.3%

Continuing its downward trend for the fourth consecutive week, inflation fell to 4.3 per cent for the week ended March 20 -- well within the finance ministry's projection of 4-4.5 per cent for the fiscal.

The point-to-point Wholesale Price Index (WPI)-based inflation fell by another 48 basis points from the previous week's level of 4.78 per cent mainly on account of cheaper primary articles. Inflation was much higher at 6.3 per cent in the year-ago period.

The rate of inflation for the week ended January 24 has been revised upwards by 23 basis points to 6.24 per cent, compared with the provisional level of 6.12 per cent.

The final WPI stood corrected at 178.8 points in the third week of January, against the provisional mark of 178.6 points. The WPI declined by 10 basis points to 179.5 points during the latest reported week, though many manufactured product prices remained firm even as food items became costlier. The index was at 172.1 points in the corresponding period of the previous year.

A moderate to sharp dip in the prices of food and non-food items pushed down the index of primary articles' group 0.5 per cent to 180.3 points.

The index was at 177.6 points in the year-ago period. Food articles group index was down 0.3 per cent to 178.1 points due to cheaper urad (6 per cent), mutton (4 per cent), poultry chicken (3 per cent), wheat (2 per cent) and bajra, fruits and vegetables and masur (1 per cent each).

However, prices rose for ragi (2 per cent) and moong, condiments and spices and maize (1 per cent each). The index of non-food articles' group fell nearly one per cent to 190.8 points as prices dipped for sunflower (four per cent), rape seed and mustard seed (three per cent), raw cotton and silk (two per cent each) and gingelly seeds and raw jute (one per cent each).

However, there was a three per cent increase in the price of copra and one per cent each in the raw skins and cotton seeds.

After remaining firm for five consecutive weeks, fuel, power, light and lubricants group index rose marginally to 262.4 points during the latest reported week due to a one per cent hike in naphtha price. The index was 256.3 points in the previous year period.

The index of manufactured products' group stood unchanged at the previous week's level of 160.7 points though prices rose for food products, machinery and transport equipment. The index was 151.4 points in the year-ago period.