Inflation rate falls 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 23 May 2009, down 0.13 points from 0.61 per cent (provisional) for the previous week. Inflation rate declined despite an increase in the prices of essential food items like fruit, tea, cereals, and pulses.

The rate of inflation stood at 8.90 per cent during the corresponding week  of the previous year (ended 24 May 2008).

The official wholesale price index for 'all commodities' (Base: 1993-94 = 100) for the week ended 23 May 2009 rose 0.04 per cent to 232.3 (provisional) from 232.2 (provisional) for the previous week.

The index for the `primary articles' group rose 0.2 per cent to 256.6 (provisional) from 256.1 (provisional) for the previous week.

Among primary articles, the index for 'food articles' group rose 0.4 per cent to 252.3 (provisional) from 251.4 (provisional) for the previous week due to higher prices of tea (5 per cent), jowar (2 per cent) and eggs, maize, arhar, condiments and spices, fruits and vegetables and gram (1 per cent each). However, the prices of ragi and barley (-1 per cent each) declined.

The index for 'Non-Food Articles' group declined by 0.1 percent to 234.5 (Provisional) from 234.7 (Provisional) for the previous week due to lower prices of gingelly seed (1%). However, the prices of raw silk (7%) and raw rubber (3%) moved up.

The index for the `fuel, power, light and lubricants' group remained unchanged at its previous week's level of 324.0 (provisional).

The index for the `manufactured products' group alaso remained unchanged at its previous week's level of 203.5 (provisional).

The index for the 'textiles' group rose 0.4 per cent to 141.5 (provisional) from 141.0 (provisional) for the previous week due to higher prices of texturised yarn (9 per cent) and nylon filament yarn, hessian cloth and hessian and sacking bags (1 per cent each).

The index for the 'paper and paper products' group rose 0.1 per cent to 203.8 (provisional) from 203.5 (provisional) for the previous week due to higher prices of other boards (all kinds) (2 per cent).

The index for the 'leather and leather products' group declined 0.7 per cent to 166.2 (provisional) from 167.4 (provisional) for the previous week due to lower prices of footwear western type (-1 per cent).

The index for the 'rubber and plastic products' group declined 0.6 per cent to 166.6 (provisional) from 167.6 (provisional) for the previous week due to lower prices of injection moulded plastic items (-4 per cent) and cycle tubes (-2 per cent).

The index for the 'non-metallic mineral products' group rose 0.7 per cent to 220.6 (provisional) from 219.1 (provisional) for the previous week due to higher prices of cement (1 per cent).

The index for 'basic metals alloys & metal products ' group declined marginally by 0.04 per cent to 255.6 (provisional) from 255.7 (provisional) for the previous week, due to lower prices of zinc (-5 per cent) and zinc ingots and lead ingots (-1 per cent each). However, the prices of steel ingots (1 per cent) moved up.

The index for 'machinery and machine tools' group declined 0.1 per cent to 172.3 (provisional) from 172.4 (provisional) for the previous week due to lower prices of airconditioners (9 per cent).

The index for 'transport equipment and parts' group declined 0.3 per cent to 174.6 (provisional) from 175.1 (provisional) for the previous week due to lower prices of truck chassis (diesel) (-1 per cent).

The annual rate of inflation based on final index for the week ended 28 March 2009 stood at 0.84 per cent as compared to 0.26 per cent (provisional) reported earlier as the final wholesale price index for 'all commodities' (base:1993-94=100) stood at 228.6 as compared to 227.3 (provisional)  calculated on point to point basis.