Inflation turns positive after 3 months; rises to 0.12 per cent

The annual rate of inflation based on the wholesale price index turned positive after remaining in the negative territory for around three months and stood at 0.12 per cent for the week ended 5 September 2009 against a negative (-) 0.12 per cent (provisional) for the previous week (ended 29 August 2009).

The rate of inflation stood at 12.42 per cent during the corresponding week of the previous year (ended 6 September 2008). Built-up inflation in the financial year so far was 5.86 per cent compared to 6.62 per cent in the corresponding period of the previous year. The 52-week average inflation for the week ended 5 September 2009 was
3.43 per cent.

The official wholesale price index for 'all commodities' (Base: 1993-94 = 100) for the week under review rose 0.4 per cent to 242.0 (provisional) from 241.1 (provisional) for the previous week.

The index for the `primary articles' group rose 1.3 per cent to 274.7 (provisional) from 271.2 (provisional) for the previous week.

Among primary articles, the index for the 'food articles' group rose 2.2 per cent to 279.9 (provisional) from 273.8 (provisional) for the previous week due to higher prices of poultry chicken (16 per cent), fruits and vegetables (8 per cent), pork (5 per cent), condiments and spices (3 per cent), bajra (2 per cent) and rice and moong (1 per cent each). However, the prices of jowar (-2 per cent) and maize and tea (-1 per cent each) declined.

The index for the 'non-food articles' group declined 1.1 per cent to 238.7 (provisional) from 241.4 (provisional) for the previous week due to lower prices of logs and timber (-19 per cent) and soyabean (-5 per cent). However, the prices of raw silk, cottonseed and raw rubber (3 per cent each), copra (2 per cent) and sunflower, castor seed and groundnut seed (1 per cent each) moved up.