Inflation rate firms up to 8.62 per cent in September

Supply constraints pushed India's annual rate of inflation, based on the wholesale price index, to 8.62 per cent (provisional) in September 2010 against 8.51 per cent (provisional) in the previous month. Build-up of inflation in the financial year (beginning April 2010) so far was lower at 3.90 per cent against 5.44 per cent in the corresponding period of the previous year.

The index of the `primary articles' group rose 1.5 per cent to 179.7 (provisional) from 177.0 (provisional) in the previous month. 

The index for the 'food articles' group rose 1.6 per cent to 179.0 (provisional) from 176.2  (provisional) in the previous month due to higher prices of fish (18 per cent), fruits and vegetables and condiments and spices (3 per cent each), pork (2 per cent) and barley, jowar and milk (1 per cent each). However, the prices of arhar (-6 per cent), moong (-5 per cent), masur (-4 per cent), bajra (-2 per cent) and maize, gram, rice and egg (-1 per cent each) declined.

The index for the 'non-food articles' group rose 2.0 per cent to 157.2 (provisional) from 154.1 (provisional) in the previous month due to higher prices of raw silk (15 per cent), rose (14 per cent), raw cotton (11 per cent), copra (5 per cent), castor seed (3 per cent), coir fiber, gaur seed, cotton seed and jasmine (2 per cent each) and linseed, fodder and groundnut seed (1 per cent each). However, the prices of marigold (-15 per cent), raw rubber (-5 per cent), rape and mustard seed and gingelly seed (-4 per cent each), raw jute (-3 per cent), sunflower (-2 per cent) and soyabean (-1 per cent) declined.

The index for the 'minerals' group rose marginally to 248.6 (provisional) from 248.5 (provisional) in the previous month due to higher prices of barytes (1 per cent). However, the prices of steatite (-9 per cent) declined.

The index for the `fuel and power' group declined 0.3 per cent to 147.6 (provisional) from 148.0 (provisional) in the previous month due to lower prices of aviation turbine fuel (-4 per cent), bitumen (-3 per cent) and naphtha (-1 per cent).  However, the price of light diesel oil (2 per cent) moved up.