Inflation rate dips to 8.51 per cent in August under revised WPI series

The annual rate of inflation based on the revised series of wholesale price index (base: 2004-05 = 100) stood at 8.51 per cent (provisional) in August 2010 (over August 2009) against 9.78 per cent (provisional) in the previous month.

The decline in inflation rate has been due mainly to a shift in the base year from 1993-94 to 2004-05.

Build-up of inflation in the financial year so far (beginning 1 April 2010) was 3.31 per cent against a build-up of 4.95 per cent in the corresponding period of the previous year.

The official wholesale price index (WPI) for 'all commodities' (base: 2004-05 = 100) for August 2010 remained unchanged at its previous month's level of 140.3 (provisional).
 
The index for the `primary articles' group (weight 20.12 per cent) declined 0.3 per cent to 177.0 (provisional) in August 2010 from 177.5 (provisional) for the previous month.

Among primary articles, the index for the 'food articles' group declined 0.8 per cent to 176.2 (provisional) during the month under review from 177.6 (provisional) in the previous month due to lower prices of fruits and vegetables (-7 per cent), moong and masur (-5 per cent each) and arhar (-4 per cent).  However, the prices of condiments and spices (7 per cent), fish-inland and maize (5 per cent each), gram and bajra (3 per cent each), barley and wheat (2 per cent each) and tea, coffee, milk and rice (1 per cent each) moved up.

The index for 'non-food articles' group rose 1.1 per cent to 154.1 (provisional) from 152.4 (provisional) in the previous month due to higher prices of flowers (13 per cent), rose and groundnut seed (11 per cent each), castor seed (8 per cent), marigold, cotton seed and copra (5 per cent each), coir fibre (4 per cent), raw silk (3 per cent), sunflower (2 per cent) and fodder (1 per cent). However, the prices of soyabean (-11 per cent), raw rubber (-4 per cent) and gingelly seed (sesamum), raw jute and mesta (-1 per cent each) declined.