Inflation rate falls further to 11.07 per cent news
23 October 2008

The annual rate of inflation based on the wholesale price index declined further to 11.07 per cent (provisional) for the week ended 11 October from 11.44 per cent (provisional) for the week ended 4 October 2008.

The annual rate of inflation stood at 3.07 per cent for the year-ago period (13 October 2007).

The official wholesale price index for 'all commodities' (Base: 1993-94 = 100) for the week ended 11 October 2008 declined by 0.3 per cent to 238.8 (provisional) from 239.6 (provisional) for the previous week.

The index for the primary articles group declined by 0.8 per cent to 249.5 (provisional) from 251.4 (provisional) for the previous week.

The index for 'food articles' group declined by 0.3 per cent to 242.6 (provisional) from 243.3 (provisional) for the previous week due to lower prices of fruits and vegetables, urad and eggs (2 per cent each) and bajra, condiments and spices and jowar (1 per cent each). However, the prices of tea (7 per cent), maize (4 per cent) and rice and masur (1 per cent each) moved up.

The index for 'non-food articles' group declined by 1.9 per cent to 235.3 (provisional) from 239.8 (provisional) for the previous week due to lower prices of raw rubber (19 per cent), sunflower (5 per cent), raw cotton (4 per cent), fodder (2 per cent) and castor seed, groundnut seed and copra (1 per cent each). However, the prices of raw tobacco (4 per cent) and rape and mustard seed (1 per cent) moved up.

The index for 'minerals' group declined by 1.3 per cent to 647.6 (provisional) from 656.2 (provisional) for the previous week due to lower prices of barytes (11 per cent) and iron ore (2 per cent). However, the prices of felspar and steatite (8 per cent each) and fire clay (5 per cent) moved up.

The annual rate of inflation, calculated on point to point basis, for 'primary articles' stood at 11.53 per cent (provisional) for the week ended 11 October 2008 as compared to 12.68 per cent (provisional) in the previous week. It was 4.58 per cent during the year-ago period, ie, 13 October 2007.

The annual rate of inflation for 'food articles' stood at 8.74 per cent (provisional) for the week ended 11 October 2008 as compared to 9.69 per cent (provisional) in the previous week. It was 2.48 per cent during the year-ago period of 13 October 2007.

The index for the `fuel, power, light & lubricants' group declined by 0.1 per cent to 370.6 (provisional) from 371.1 (provisional) for the previous week due to lower prices of furnace oil (2 per cent). However, the prices of lubricants (2 per cent) moved up.

The index for the `manufactured products' group declined by 0.2 per cent to 205.7 (provisional) from 206.1 (provisional) for the previous week.

Among `manufactured products', the index for 'food products' group declined by 1.3 per cent to 205.4 (provisional) from 208.1 (provisional) for the previous week due to lower prices of rice bran oil (10 per cent), imported edible oil (7 per cent) and oilcakes and cotton seed oil (5 per cent each). However, the prices of ghee (2 per cent) moved up.

The index for 'textiles' group declined by 0.2 per cent to 140.0 (provisional) from 140.3 (provisional) for the previous week due to lower prices of polyester staple fibre (3 per cent) and cotton yarn-cones (2 per cent). However, the prices of hessian and sacking bags (6 per cent), hessian cloth (2 per cent) and other cotton yarn (1 per cent) moved up.

The index for 'rubber & plastic products' group rose by 1.7 per cent to 168.5 (provisional) from 165.7 (provisional) for the previous week due to higher prices of cycle tubes (16 per cent), cycle tyres (9 per cent) and decorative laminates (4 per cent). However, the prices of PVC fitting and accessories (10 per cent) declined.

The index for 'chemicals & chemical products' group rose marginally to 224.8 (provisional) from 224.7 (provisional) for the previous week due to higher prices of caustic soda (sodium hydroxide) (4 per cent). However, the prices of liquid chlorine (2 per cent) and acid (all kinds) (1 per cent) declined.

The index for 'basic metals, alloys & metal products' group declined marginally to 297.7 (provisional) from 297.8 (provisional) for the previous week due to lower prices of zinc ingots (3 per cent) and lead ingots (1 per cent). However, the prices of ferro silicon (3 per cent) moved up.

The final index for the week ended 16 August 2008 has been revised to 12.82 per cent as compared to 12.40 per cent (provisional) reported earlier as the final wholesale price index for 'all commodities' stood at 241.1 as compared to 240.2 (provisional).


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Inflation rate falls further to 11.07 per cent