Inflation up at 4.47, set to meet target

Inflation for week ended March 27 was marginally up at 4.47 per cent "" within the government's target for the fiscal-end at 4-4.5 per cent. The average for 2003-04, however, was 5.18 per cent.

The inflation rate was 17 basis points higher than the previous week's level of 4.3 per cent because of costlier foods, electricity and manufactured products. The price level was as high as 6.49 per cent during same period in the previous year.

The revised inflation rate for the week ended January 31 was 11 basis points higher than the provisional figure of 5.8 per cent.

The final Wholesale Price Index (WPI) stood corrected at 179.1 points during the last week of January, compared with the provisional figure of 178.9.

WPI rose to 180 points with all the major indices of primary goods, fuels and manufactured products moving up from 172.3 points in the year-ago period.

The primary articles' group index rose 0.5 per cent to 181.2 points with prices of food products going up substantially and that of non-food items marginally. It was 178.2 points in the same period in the previous year.

Food articles' group index shot up 0.7 per cent to 179.3 points because of costlier fish (13 per cent), bajra (three per cent), fruits and vegetables (two per cent) and wheat (one per cent).

But prices declined for masur (six per cent), poultry chicken (five per cent), tea (three per cent), eggs and barley (two per cent each) and gram, condiments and spices, ragi and maize (one per cent each).

The index of non-food articles' group was up 0.1 per cent to 190.9 points due to higher prices for raw rubber (five per cent), raw wool (four per cent), soyabean (three per cent), castor seed and raw tobacco (two per cent each) and raw silk and sunflower (one per cent each).

Prices, however, fell for rape and mustard seed and linseed (two per cent each) and cotton seed and gingelly seed (one per cent each). A one per cent increase in the price of electricity led to a marginal 0.3 per cent hike in the fuel, power, light and lubricants' group index, while the index was only 256.3 points in the year-ago period.

The index of manufactured products' group was up 0.2 per cent to 161 points on account of costlier textiles, beverages, tobacco, paper, non-metallic mineral products, basic metals, machinery and transport equipment. The index was 151.5 points in the previous year period.

Basic metals, alloys and metal products' group index was up 0.2 per cent to 179.9 points due to higher prices for ferro-manganese (31 per cent), brass sheets and strips (10 per cent), aluminium extrusion and steel furniture (two per cent) and other aluminium material (one per cent). However, there was a one per cent decline in the price of aluminium rolled products.

The index of machinery and machine tools' group was up 0.3 per cent to 134.2 points as prices went up for hydraulic pumps (16 per cent), sewing machines (15 per cent) and PVC insulated cables (two per cent).

Transport equipment and parts' group index rose 0.2 per cent to 148.9 points due to 14 per cent increase in the price of springs and one per cent in two/three wheeler parts and components.

The index for chemicals and chemical products' group was down 0.1 per cent to 178.5 points due to lower prices for vitamin tablets (nine per cent), liquid chlorine (five per cent) and oxygen and syrup (two per cent each).

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Price rise

• The average inflation in 2003-04 was 5.18 per cent
• The government has forecast inflation to be in the range of 4-4.5 at the end of 2003-04
• Inflation was as high as 6.49 per cent in the last week of March 2003