Inflation rises marginally, but still negative

The annual rate of inflation based on the wholesale price index stood at -1.21 per cent (provisional) for the week ended 4 July 2009 as compared to -1.55 per cent (provisional) for the previous week (ended 27 June 2009) and 12.19 per cent during the corresponding week (ended 5 July 2008) of the previous year.

The official wholesale price index for 'all commodities' (base: 1993-94 = 100) for the week under review rose 0.7 per cent to 236.4 (provisional) from 234.7 (provisional) for the previous week.

The index for the primary articles group remained unchanged at its previous week's level of 258.5 (provisional).

Among primary articles, the index for the 'food articles' group declined 0.2 per cent to 253.6 (provisional) from 254.0 (provisional) for the previous week due to lower prices of fish-marine (-9 per cent) and ragi and fruits and vegetables (-1 per cent each). However, the prices of coffee (15 per cent), arhar (3 per cent), maize (2 per cent) and condiments and spices (1 per cent) moved up.

The index for the 'non-food articles' group rose 0.3 per cent to 237.7 (provisional) from 237.0 (provisional) for the previous week due to higher prices of gingelly seed (18 per cent) and cottonseed (6 per cent). However, the prices of raw silk and soyabean (-3 per cent each) and raw rubber (-1 per cent) declined.

The index for the `fuel, power, light and lubricants' group rose 3.1 per cent to 338.2 (provisional) from 327.9 (provisional) for the previous week due to higher prices of naphtha (-15 per cent), furnace oil (11 per cent), petrol (10 per cent), high-speed diesel oil (7 per cent), light diesel oil (4 per cent) and bitumen (2 per cent).