WPI inflation rate nears double digit; hits 9.89 per cent in February

The annual rate of inflation based on the wholesale price index rose to 9.89 per cent (provisional) in February 2010 from 8.56 per cent (provisional) in the previous month and 3.50 per cent during the corresponding month of the previous year. 

Build-up of inflation in the financial year so far was 9.60 per cent compared with 0.93 per cent in the corresponding period of the previous year.

The official wholesale price index for 'all commodities' (base: 1993-94 = 100) rose 0.6  per cent to 250.1 (provisional) in February 2010 from 248.5  (provisional) in the previous month.

The index for the `primary articles' group remained unchanged at the previous month's level of 284.7 (provisional).

Among primary articles, the index for 'food articles' group declined 0.1 per cent to 286.1 (provisional) from 286.4  (provisional) for the previous month due to lower prices of tea (-9 per cent), arhar (-7 per cent), urad (-6 per cent), gram, masur and eggs (-4 per cent each), fruits and vegetables (-2 per cent) and fish-inland, maize, barley and ragi (-1 per cent each). However, the prices of fish (marine)   (5 per cent), poultry chicken (4 per cent), coffee (3 per cent), pork and moong (2 per cent each) and wheat, jowar and milk (1 per cent each) moved up.

The index for the 'non-food articles' group rose 0.1 per cent to 256.5 (provisional) from 256.3 (provisional) in the previous month due to higher prices of coir fibre (41 per cent), gingelly seed (9 per cent), mesta (8 per cent), sunflower and niger seed (4 per cent each), copra, raw jute and fodder (2 per cent each) and groundnut seed (1 per cent). However, the prices of logs and timber (-7 per cent), tobacco (-4 per cent), raw skins (-3 per cent), raw cotton and rape and mustard seed (-2 per cent each) and linseed and soyabean (-1 per cent each) declined.