Inflation eases to 6.38 per cent

The annual rate of inflation based on the wholesale price index stood lower at 6.38 per cent (provisional) for the week ended 20 December as against 6.61 per cent (provisional) for the previous week (ended 13 December 2008) and 3.74 per cent during the corresponding week of the previous year (ended 22 December 2007).

The decline in inflation rate came on the back of an easing of prices in all three major components of index, primary articles, fuel items and manufactured products.

The official wholesale price index for 'all commodities' (Base: 1993-94 = 100) for the week ended 20 December 2008 declined by 0.2 per cent to  230.2 (provisional) from 230.7 (provisional) for the previous week.

Among the group, the index for the 'primary articles' group, declined by 0.2 per cent to 248.8 (provisional) from 249.2 (provisional) for the previous week.

The index for 'food articles' group declined by 0.1 per cent to 242.6 (provisional) from 242.9  (provisional) for the previous week due to lower prices of tea (-3 per cent) and gram, fruits and vegetables, barley, arhar and condiments and spices (-1 per cent each). However, the prices of jowar (6 per cent) and maize and bajra (1 per cent each) moved up.
 
The index for 'non-food articles' group declined by 0.1 per cent to 236.1 (provisional) from 236.4 (provisional) for the previous week due to lower prices of cotton seed (-2 per cent) and castor seed (-1 per cent).  However, the prices of raw silk (5 per cent) and raw rubber (2 per cent) moved up.
 
The index for the 'minerals' group declined by 0.5 per cent to 606.9 (provisional) from 610.1 (provisional) for the previous week due to lower prices of chromite (-42 percent), steatite (-4 per cent). However, the prices of barytes (38 per cent), fire clay (11 per cent) and asbestos (5 per cent) moved up.
 
The annual rate of inflation, calculated on point-to-point basis, for 'primary articles' stood at 12.07 per cent (provisional) for the week under review as compared to 12.15 per cent (provisional) in the previous week. It was 4.08 per cent as of 22 December 2007.

The rate of inflation for the 'food articles' group stood at 10.52 per cent (provisional) for the week ended 20 December 2008 as compared to 10.46 per cent (provisional) in the previous week. It was 2.14 per cent as of 22 December 2007, ie, a year ago.
 
The index for the `fuel, power, light and lubricants' group declined by 0.5 per cent to 330.5 (provisional) from 332.1 (provisional) for the previous week, due to lower prices of aviation turbine fuel (13 per cent), bitumen (7 per cent), light diesel oil (6 per cent each) and furnace oil (3 per cent).
 
The index for the 'MANUFACTURED PRODUCTS' group declined by 0.1 per cent to 201.4 (provisional) from 201.7 (provisional) for the previous week.
 
The index for 'food products' group rose 0.2 per cent to 199.6 (provisional) from 199.3 (provisional) for the previous week due to higher prices of gur (3 per cent) and oil cakes (1 per cent).  However, the prices of salt (-4 per cent), imported edible oil and rice bran oil (-3 per cent each) and cotton seed oil (-2 per cent) declined.
 
The index for the 'textiles' group declined by 0.1 per cent to 141.2 (provisional) from 141.4 (provisional) for the previous week due to lower prices of synthetic yarn (-2 per cent).
 
The index for 'paper and paper products' group rose 0.2 per cent to 206.3 (provisional) from 205.9 (provisional) for the previous week due to higher prices of news paper (2 per cent).
 
The index for 'chemicals and chemical products' group declined by 0.05 per cent to 220.0 (Provisional) from 220.1 (provisional) for the previous week due to lower prices of acid (all kinds) (-2 per cent).  However, the prices of caustic soda (sodium hydroxide) (3 per cent) moved up.
 
The index for 'non-metallic mineral products' group declined by 0.1 per cent to 215.6 (provisional) from 215.9 (provisional) for the previous week due to marginal decline in the prices of cement.
 
The index for 'basic metals alloys and metal products' group declined by 0.7 per cent to 277.5 (provisional) from 279.4 (provisional) for the previous week due to lower prices of steel sheets, plates and strips (p11 per cent), basic pig iron and foundry pig iron (-6 per cent each), other iron steel and ms bars and rounds (-4 per cent each), zinc and zinc ingots (-3 per cent each) and lead ingots (-2 per cent).
 
The index for the 'machinery and machine tools' group declined by 0.1 per cent to 176.9 (provisional) from 177.0 (provisional) for the previous week due to lower prices of electric motors (-2 per cent).
 
The final rate of inflation for the week ended 25 October 2008 remained unaltered at its original level of 10.72 per cent as the provisional level of 238.5 reported earlier.