Inflation rate edges up to 0.7 per cent

The annual rate of inflation based on the wholesale price index stood at 0.70 per cent (provisional) for the week ended 25 April 2009 as compared to 0.57 per cent (provisional) for the previous week and 8.27 per cent during the corresponding week of the previous year (week ended 26 April 2008).

The official wholesale price index for 'all commodities' (base: 1993-94 = 100) for the week under review rose 0.2 per cent to 230.7 (provisional) from 230.2 (provisional) for the previous week.

Although marginal, this is the third consecutive rise in inflation rate, and the current spike has been due mainly to rising prices of essential food articles like cereals, pulses, vegetable, milk and sugar.

The index for the `primary articles' group rose 0.2 per cent to 253.7 (provisional) from 253.2 (provisional) for the previous week.

Among primary articles, the index for the 'food articles' group rose 0.4 per cent to 249.3 (provisional) from 248.3 (provisional) for the previous week due to higher prices of tea (7 per cent), bajra (3 per cent), arhar (2 per cent) and milk, wheat, condiments and spices and jowar (1 per cent each). However, the prices of masur (-2 per cent) and fruits and vegetables (-1 per cent) declined.

The index for the 'non-food articles' group declined 0.3 per cent to 231.5 (provisional) from 232.2 (provisional) for the previous week due to lower prices of raw rubber (-3 per cent), raw silk (-2 [per cent) and groundnut seed and raw cotton (-1 per cent each). However, the prices of castor seed and soyabean (3 per cent each) and tobacco and linseed (1 per cent each) moved up.

The index for the `fuel, power, light and lubricants' group remained unchanged at its previous week's level of 323.0 (provisional)

The index for the `manufactured products' group rose 0.3 per cent to 202.2 (provisional) from 201.6 (provisional) for the previous week.

Among manufactured products, the index for the 'food products' group rose 1.3 per cent to 228.9 (provisional) from 226.0 (provisional) for the previous week due to higher prices of gur and rice bran oil (4 per cent each), skimmed milk powder and oil cakes (3 per cent each), sugar and khandsari (2 per cent each) and ghee and gingelly oil (1 per cent each).

The index for the 'chemicals and chemical products' group rose 0.3 per cent to 214.9 (provisional) from 214.2 (provisional) for the previous week due to higher prices of syrup (6 per cent), purified terephthalic acid (PTA) and vitamin tablets (5 per cent each), methanol (3 per cent), tablets except vitamin and penicillin (2 per cent) and acid (all kinds) (1 per cent).

The index for 'basic metals alloys & metal products' group declined 0.1 per cent to 255.2 (provisional) from 255.4 (provisional) for the previous week due to lower prices of zinc (-4 per cent) and zinc ingots and lead ingots (-2 per cent each).

The inflation rate for the week ended 28 February 2009 stood at 2.47 per cent as compared to 2.43 per cent (provisional) reported earlier (12 March 2009) as the final wholesale price index for 'all commodities' has been revised to 227.8 as compared to 227.7 (provisional).