Inflation rate eases further to 11.44 per cent news
16 October 2008

Mumbai: The annual rate of inflation based on the wholesale price index (Base: 1993-94=100) eased further to 11.44 per cent during the week ended 4 October from 11.80 per cent for the week ended 27 September.

The decline has mainly been due to a fall in the prices of fuel oils and manufactured goods, latest figures released by the government showed.

The index for 'non-food articles' group declined by 1.0 per cent to 239.8 (provisional) from 242.1 (provisional) for the previous week due to lower prices of raw rubber (18 per cent) and groundnut seed (1 per cent). However, the prices of castor seed and gingelly seed (1 per cent each) moved up.

The annual rate of inflation, calculated on point to point basis, for 'primary articles' stood at 12.68 per cent (provisional) for the week ended 4 October compared to 11.17 per cent (provisional) in the previous week. It was 4.99 per cent as of 6 October 2007.

The annual rate of inflation for 'food articles' stood at 9.69 per cent (provisional) for the week under review as compared to 7.61 per cent (provisional) in the previous week. It was 2.78 per cent for the comparable period last year.

The index for fuel prices fell 1.1 per cent to 371.1 (provisional) from 375.3 (provisional) for the previous week due to lower prices of naphtha (-11 per cent), aviation turbine fuel (-6 per cent) and furnace oil (-5 per cent). However, the prices of bitumen (4 per cent) moved up.

The index for manufactured group declined by 0.5 per cent to 206.1 (provisional) from 207.2 (provisional) for the previous week.

The index for 'food products' group declined by 2.4 per cent to 208.1 (provisional) from 213.3 (provisional) for the previous week due to lower prices of oilcakes (-12 per cent), imported edible oil (-5 per cent), rice bran oil (-3 per cent) and cottonseed oil (-1 per cent). However, the prices of gur (4 per cent), salt (2 per cent) and gingelly oil (1 per cent) moved up.

The index for 'textiles' group rose 0.1 per cent to 140.3 (provisional) from 140.2 (provisional) for the previous week due to higher prices of texturised yarn (2 per cent).

The index for 'basic metals, alloys and metal products' group declined by 0.6 per cent to 297.8 (provisional) from 299.6 (provisional) for the previous week due to lower prices of other iron steel (-11 per cent), basic pig iron and foundry pig iron (-6 per cent each), lead ingots (-4 per cent) and zinc ingots and zinc (-2 per cent each). However, the prices of steel wire ropes (5 per cent) and steel wire (4 per cent) moved up.

The index for 'machinery and machine tools' group rose 0.1 per cent to 176.3 (provisional) from 176.1 (provisional) for the previous week due to higher prices of complete tractors (2 per cent).

The index for 'transport equipment and parts' group rose 0.1 per cent to 176.4 (provisional) from 176.3 (provisional) for the previous week due to higher prices of automobile cables (5 per cent).

The inflation rate for the week ended 9 August 2008 has been revised to 12.82 per cent from the provisional 12.62 per cent as the final wholesale price index for all commodities' stood at 241.1 as compared to 240.7 (provisional).


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Inflation rate eases further to 11.44 per cent