WPI inflation dips to 0.26 per cent

The annual rate of inflation based on the wholesale price index stood lower at 0.26 per cent (provisional) for the week ended 28 March 2009, after moving up to 0.31 per cent (provisional) in the previous week (ended 21 March 2009).

The inflation rate stood at 7.75 per cent during the corresponding week of the previous year, ie, 29 March 2008.

The official wholesale price index for 'all commodities' (base: 1993-94 = 100) for the week ended 28 March 2009 remained unchanged at its previous week's level of 227.3 (provisional).

The index for the `primary articles' group declined by 0.3 per cent to 245.0 (provisional) from 245.7 (provisional) for the previous week.

Among primary articles, the index for 'food articles' group rose 0.3 per cent to 242.6 (provisional) from 241.8 (provisional) for the previous week due to higher prices of barley (5 per cent), ragi, bajra and fruits and vegetables (2 per cent each) and maize (1 per cent). However, the prices of tea (-1 per cent) declined.

The index for 'non-food articles' group rose 0.5 per cent to 227.0 (provisional) from 225.8 (provisional) for the previous week due to higher prices of raw rubber (8 per cent), raw cotton (2 per cent) and castor seed and gingelly seed (1 per cent each). However, the prices of linseed (-2 per cent) and copra and fodder (-1 per cent each) declined.

The index for the 'minerals' group declined 11.8 per cent to 549.2 (provisional) from 622.6 (provisional) for the previous week due to lower prices of fire clay (-19 per cent), iron ore (-14 per cent) and chromite (-2 per cent). However, the prices of dolomite (32 per cent), felspar (15 per cent), barytes (3 per cent) and steatite (2 per cent) moved up.

The index for the `fuel, power, light and lubricants' group remained unchanged at its previous week's level of 320.9 (provisional). 

The index for the `manufactured products' group rose 0.2 per cent to 200.3 (provisional) from 200.0 (provisional) for the previous week.

Among manufactured products, the index for 'food products' group rose 0.05 per cent to 218.9 (provisional) from 218.8 (provisional) for the previous week due to higher prices of imported edible oil (6 per cent), malted food and rice bran oil (2 per cent each) and oil cakes, gingelly oil and groundnut oil (1 per cent each). However, the prices of sugar (-1 per cent) declined.

The index for the 'textiles' group rose 1.2 per cent to 140.6 (provisional) from 138.9 (provisional) for the previous week due to higher prices of cotton yarn-cones, hessian cloth and cotton yarn-'hanks (3 per cent each) and hessian and sacking bags and other cotton yarn (2 per cent each).

The index for 'paper and paper products' group declined 0.1 per cent to 204.0 (provisional) from 204.2 (provisional) for the previous week due to lower prices of newsprint (-1 per cent).

The index for the 'chemicals and chemical products' group rose 0.1 per cent to 214.0 (provisional) from 213.8 (provisional) for the previous week due to higher prices of benzene (14 per cent) and purified terephthalic acid  (2 per cent). However, the prices of PVC resins (-2 per cent) and pigments (-1 per cent) declined.

The index for the 'machinery and machine tools' group rose 0.2 per cent to 172.5 (provisional) from 172.2 (provisional) for the previous week due to higher prices of enamelled copper wires (9 per cent).

The inflation rate based on the final index for the week ended 31 January 2009 stood at 3.98 per cent against 4.39 per cent (provisional) reported earlier as the the final wholesale price index for 'all commodities' stood at 227.5 as compared to 228.4 (provisional).