labels: economy - general
Wholesale Price Index declines to 3.8 per centnews
12 August 2005

New Delhi: The wholesale price index-based inflation fell to 3.84 per cent from 8.02 a year ago indicating the 'base year' effect. The WPI remained unchanged at previous weeks level of 194.5 points. The index was 187.3 points a year ago.

The final inflation figure stood corrected at 4.39 per cent in the week ended June 4 as compared to 4.22 per cent, while WPI was revised upwards to 192.8 points as against the provisional level of 192.5 points.

Global oil prices had surged to $61 a barrel in the last week of July 2005, on reports of explosion at a BP refinery in Texas (US) and at ONGC oil platform, raising fears of disruption of petroleum supplies.

The government had raised petroleum and diesel prices by Rs2.50 and Rs2 per litre in June after a long gap. However, the continued rise in international crude oil prices increased under-recoveries and losses of PSU oil companies.

Concerned that rising crude prices will affect forex reserves on one hand and influence domestic prices on the other, RBI Governor Y V Reddy said on Wednesday that the central bank was keeping a close watch on the situation.


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Wholesale Price Index declines to 3.8 per cent