Inflation rate falls to a one-year low at 5.07 per cent

The annual rate of inflation based on the wholesale price index fell to a one year low at 5.07 per cent (provisional) for the week ended 24 January against 5.64 per cent (provisional) for the previous week (ended 17 January) and 4.78 per cent during the corresponding week of the previous year (ended 26 January 2008).

It was the lowest rate since 9 February 2008 when inflation stood at 4.98 per cent.

Inflation rare had risen in the past two consecutive weeks amidst a long-drawn strike by truck operators.

The official wholesale price index for 'all commodities' (Base: 1993-94 = 100) for the week under review declined by 0.2 per cent to 230.1 (provisional) from 230.5  (provisional) for the previous week.

The index for the primary articles group declined marginally to 249.0 (provisional) from 249.1 (provisional) for the previous week.

Among primary article, the index for 'food articles' rose 0.2 per cent to 245.4 (provisional) from 244.9  (provisional) for the previous week due to higher prices of maize (3 per cent), rice (2 per cent) and  ragi, milk, condiments and spices and moong (1 per cent each). However, the prices of fruits and vegetables and bajra (-2 per cent each) and arhar and coffee (-1 per cent each) declined.

The index for 'non-food articles' declined by 0.7 per cent to 230.9 (provisional) from 232.6 (provisional) for the previous week due to lower prices of raw rubber (-6 per cent), copra (-5 per cent), groundnut seed (-3 per cent) and gingelly seed (-1 per cent).  However, the prices of raw silk (2 per cent) moved up.

The annual rate of inflation, calculated on point-to-point basis, for 'primary articles' stood at 9.02 per cent (provisional) for the week under review as compared to 11.01 per cent (provisional) in the previous week. It was 6.13 per cent in the same week in the previous year.

The index for the `fuel, power, light  and lubricants' group rose 0.6 per cent to 332.0 (provisional) from 330.0 (provisional) for the previous week due to higher prices of naphtha (15 per cent), furnace oil and light diesel oil (2 per cent each).

The index for the `manufactured products' group declined by 0.5 per cent to 200.8 (provisional) from 201.8 (provisional) for the previous week.

Among `manufactured products' group, the index for 'food products' rose 2.5 per cent to 212.3 (provisional) from 207.2 (provisional) for the previous week due to higher prices of oil cakes (11 per cent), rape and mustard oil (4 per cent each), baby food (all kinds) (3 per cent) and imported edible oil and sugar (1 per cent each). However, the prices of rice bran oil (-2 per cent) and coffee powder and khandsari (-1 per cent each) declined.

The index for 'beverages tobacco and tobacco products' group rose 0.2 per cent to 299.0 (provisional) from 298.5 (provisional) for the previous week due to higher prices of scented chewing tobacco (8 per cent).

The index for the 'textiles' group declined by 0.1 per cent to 141.1 (provisional) from 141.3 (provisional) for the previous week due to lower prices of hessian and sacking bags (-3 per cent), woollen cloth (-2 per cent) and hessian cloth (-1 per cent).  However, the prices of texturised yarn (2 per cent) and miscellaneous cotton cloth (1 per cent) moved up.

The index for 'paper and paper products' group rose 0.7 per cent to 205.8 (provisional) from 204.3 (provisional) for the previous week due to higher prices of pulp (18 per cent).

The index for the 'basic metals alloys and metal products' group declined 5.6 per cent to 261.3 (provisional) from 276.8 (provisional) for the previous week due to lower prices of heavy rails (23 kg. Upwards) (-22 per cent), joist and rolls (-20 per cent), aluminium ingots (-15 per cent), bars and rods (-13 per cent), aluminium extrusion, blooms and billets & slabs (-12 per cent each), other aluminium material and wire (all kinds) (-8 per cent each), aluminium rolled products (-7 per cent), steel ingots (plain carbon) (-5 per cent), zinc, mild steel and tensile plates, skelps and  CR coils (-4 per cent each), angles, channels and sections (-3 per cent) and CR sheets (-1 per cent). However, the prices of ordinary casting (7 per cent) moved up.

The index for 'machinery and machine tools' group rose 0.2 per cent to 176.0 (provisional) from 175.7 (provisional) for the previous week due to higher prices of complete tractors (3 per cent), ring spinning and doubling frames (2 per cent) and other pumps and dry cell (1 per cent each).  However, the prices of textile machinery parts (-3 per cent), powerlooms automatic, roller bearings and air and gas compressors (-2 per cent each) and ball bearings (-1 per cent) declined.

The index for 'transport equipment and parts' group rose 0.3 per cent to 177.1 (provisional) from 176.5 (provisional) for the previous week due to higher prices of car chassis (assembled) (3 per cent) and 2/3 wheeler parts/components (1 per cent).

The inflation based on final index for the week ended 29 November 2009 stood at 7.86 per cent against 8.00  per cent (provisional) reported earlier as the final wholesale price index for  'all commodities' (Base:1993-94=100) stood at  233.3 as compared to  233.6  (provisional).