Mumbai: The point to point rate of inflation based on the consumer price index for the month of May 2008 fell marginally to 7.75 per cent from 7.81 per cent in April 2008, even as inflation based on the wholesale price index continued to surge, government data showed.

The all-India consumer price index for industrial workers (CPI-IW), with base 2001=100 increased by one percentage point and stood at 139 in May 2008.   

During May 2008, the index recorded maximum increase of seven points in Goa centre, three points each in Vijaywada, Godavarikhani, Rourkela and Tiruchirapally centres, two points in seven centres and one point each in 21 centres.

The index decreased by two points each in Jaipur, Jalandhar, Ludhiana and Lucknow centres and by one point each in 13 centres while in the remaining 28 centres the index remained stationary.            

The maximum increase of seven points in Goa centre was mainly due to increase in the prices of rice, fresh fish, poultry, goat meat, saltish snack and saree (synthetic). The increase of three points in Vijaywada has been due to rice, poultry, buffalo milk and saltish snack; in Godavarikhani centre it was due to rice, poultry, buffalo milk, green chillies and fruits; in Rourkela it was due to fresh fish, onion, potato, tomato, saree (cotton/synthetic) and chappals; in Tiruchirapally it was due to rice, poultry and eggs.

The decrease of two points each in Jaipur, Jalandhar, Ludhiana and Lucknow centres has mainly been due to decrease in the prices of edible oils and vegetables.

The indices in respect of the six main centres are as follows :

1. Ahmedabad     134
2. Bangalore        144
3. Chennai           131
4. Delhi                135
5. Kolkata            139
6. Mumbai           142

Food items have a higher weight in CPI-IW, while manufactured goods constitute the majority in WPI. The inflationary impact on consumers, therefore, turned out to be much lighter than what has been perceived under the WPI.

The food group has a weight of 46.2 per cent in CPI-IW, compared to about 27 per cent in WPI. Moreover, while tradable commodities, especially manufactured goods, have a larger weight in WPI, non-tradable services such as medical care, education and recreation, transport and communication and personal care form 23.3 per cent of the CPI-IW basket, along with another 15 per cent for housing (calculated on the basis of rentals).

The CPI would move up once the rise in fuel prices and other commodities gets factored into the prices of goods in the consumption basket. Fuel prices were raised in early June.