Inflation rate climbs down to 0.48 per cent

The annual rate of inflation based on the wholesale price index stood at 0.48 per cent (provisional) for the week ended 2 May 2009 compared to 0.70 per cent (provisional) for the previous week (ended 25 April 2009) and 8.73 per cent during the corresponding week (ended 3 May 2008) of the previous year.

Inflation rate in the country has steadily been climbing for the past three weeks mainly due to high prices of food items. Analysts expect the current declining trend to continue for some time. However, they rule out the prospect of the Reserve Bank of India further easing its monetary policy now.

The official wholesale price index for 'all commodities' (base: 1993-94 = 100) for the week under review rose 0.4 per cent to 231.6 (provisional) from 230.7 (provisional) for the previous week.

The index for the `primary articles' group rose 0.4 per cent to 254.7 (provisional) from 253.7 (provisional) for the previous week.

Amjong primary articles, the index for the 'food articles' group rose 0.3 per cent to 250.0 (provisional) from 249.3 (provisional) for the previous week due to higher prices of ragi (17 per cent), tea (2 per cent) and bajra, maize, fruits and vegetables and urad (1 per cent each).

The index for 'non-food articles' group rose 0.8 per cent to 233.3 (provisional) from 231.5 (provisional) for the previous week due to higher prices of raw wool (24 per cent), raw rubber and sunflower (6 per cent each), raw cotton (2 per cent) and copra (1 per cent). However, the prices of raw silk (-2 per cent) and tobacco (-1 per cent) declined.

The index for the `fuel, power, light and  lubricants' group rose 0.2 per cent to 323.7 (provisional) from 323.0 (provisional) for the previous week due to higher prices of furnace oil and naphtha (3 per cent each) and light diesel oil (1 per cent). However, the prices of bitumen and aviation turbine fuel (1 per cent each) declined.

The index for the `manufactured products' group rose 0.4 per cent to 203.0 (provisional) from 202.2 (provisional) for the previous week.

Among manufactured products, the index for the 'food products' group rose 0.7 per cent to 230.5 (provisional) from 228.9 (provisional) for the previous week due to higher prices of imported edible oil (4 per cent) and sugar (3 per cent). However, the prices of groundnut oil, rice bran oil, gingelly oil and gur (-1 per cent each) declined.

The index for the 'chemicals and chemical products' group rose 1.3 per cent to 217.6 (provisional) from 214.9 (provisional) for the previous week due to higher prices of pesticides (33 per cent), benzene (27 per cent), calcium ammonium nitrate n-content (24 per cent) and purified terephthalic acid (PTA) (11 per cent). However, the prices of PVC resin (-6 per cent) and methanol (-2 per cent) declined.

The index for the 'basic metals alloys and metal products' group rose 0.1 per cent to 255.5 (provisional) from 255.2 (provisional) for the previous week due to higher prices of other iron steel (3 per cent) and foundry pig iron and basic pig iron (2 per cent each). However, the prices of lead ingots (-4 per cent) and zinc (-2 per cent) declined.

The index for the 'transport equipment and parts' group declined 0.2 per cent to 175.2 (provisional) from 175.5 (provisional) for the previous week due to lower prices of car chassis (assembled) (1 per cent).

The final index for the week ended 7 March 2009 stood at 0.89 per cent as compared to 0.44 per cent (provisional) reported earlier (19 March 2009) as the wholesale price index for 'all commodities' (base:1993-94=100) has been revised to 227.7 as compared to 226.7 (provisional).