WPI inflation rate more than doubles to 0.57 per cent

The annual rate of inflation based on the wholesale price index stood at 0.57 per cent (provisional) for the week ended 18 April 2009, more than double the rate of 0.26 per cent (provisional) for the previous week (ended 11 April 2009) and 8.23 per cent during the corresponding week of the previous year (19 April 2008).

The spike in inflation rate has been due to rising prices of food, vegetable, rubber and edible oil, according to latest data released by the commerce ministry.

The official wholesale price index for 'all commodities' (base: 1993-94 = 100) for the week under review rose 0.6 per cent to 230.2 (provisional) from 228.8 (provisional) for the previous week.

The index for the `primary articles' group rose 1.7 per cent to 253.2 (provisional) from 248.9 (provisional) for the previous week.

The index for 'food articles' group rose 0.6 per cent to 248.3 (provisional) from 246.8 (provisional) for the previous week due to higher prices of tea (7 per cent), urad (5 per cent), condiments and spices (4 per cent), gram and moong (2 per cent each) and fruits and vegetables, bajra, maize, arhar and jowar (1 per cent each). However, the prices of masur (-3 per cent) declined.

The index for 'non-food articles' group rose 0.7 per cent to 232.2 (provisional) from 230.5 (provisional) for the previous week due to higher prices of mesta (11 per cent), raw rubber (5 per cent), gingelly seed, rape and mustard seed and groundnut seed (3 per cent each), linseed (2 per cent) and castor seed (1 per cent). However, the prices of tobacco and copra (-3 per cent each) and raw cotton (-2 per cent) declined.

The index for 'minerals' group rose 22.9 per cent to 675.2 (provisional) from 549.2 (provisional) for the previous week due to higher prices of stealite (35 per cent) and iron ore (27 per cent). However, the prices of magnesite (-3 per cent) declined.

The index for the `fuel, power, light & lubricants' group rose 0.1 per cent to 323.0 (provisional) from 322.6 (provisional) for the previous week due to higher prices of aviation turbine fuel (8 per cent) and furnace oil (2 per cent).

The index for the `manufactured products' group rose 0.3 per cent to 201.6 (provisional) from 200.9 (provisional) for the previous week.

Among manufactured products, the index for 'food products' group rose 1.9 per cent to 226.0 (provisional) from 221.8 (provisional) for the previous week due to higher prices of rice bran oil (11 per cent), khandsari and cotton seed oil (8 per cent each), imported edible oil (6 per cent), gur (5 per cent), sugar and oil cakes (3 per cent each), groundnut oil (2 per cent) and rape and mustard oil (1 per cent). However, the prices of unrefined oil (-15 per cent) and gingelly oil (-1 per cent) declined.

The index for 'textiles' group declined 0.4 per cent to 140.4 (provisional) from 141.0 (provisional) for the previous week due to lower prices of synthetic yarn (-2 per cent) and cotton yarn-hanks and cotton yarn-cones (-1 per cent each). However, the prices of hessian and sacking bags (1 per cent) moved up.

The index for 'chemicals & chemical products' group declined 0.1 per cent to 214.2 (provisional) from 214.4 (provisional) for the previous week due to lower prices of calcium ammonium nitrate n-content (-5 per cent).

The index for 'non-metallic mineral products' group rose 0.05 per cent to 219.1 (provisional) from 219.0 (provisional) for the previous week due to higher prices of building bricks (1 per cent).

The index for 'basic metals alloys & metal products' group rose 0.1 per cent to 255.4 (provisional) from 255.2 (provisional) for the previous week due to higher prices of zinc and lead ingots (7 per cent each), zinc ingots (4 per cent) and pipes & tubes (2 per cent). However, the prices of foundry pig iron, basic pig iron and steel ingots (-1 per cent each) declined.

The annual rate of inflation for the week ended 21 February stood at 2.99 per cent compared to the 3.03 per cent reported earlier as the final index for `all commodities' for that week has been revised to 227.5 from the 227.6 (provisional) reported earlier (5 March 2009).