Rising food prices push up WPI inflation rate to (-) 0.12 per cent

The annual rate of inflation based on the wholesale price index edged up to -0.12 per cent (provisional) during the week ended 29 August 2009 from -0.21 per cent (provisional) in the previous week (ended 22 August 2009) as rising food prices reversed the downward trend in the wholesale price index.

The inflation rate stood at 12.38 per cent during the corresponding week of the previous year (30 August 2008).

Build-up inflation in the current financial year so far was 5.47 per cent compared to a build-up of 6.48 per cent in the corresponding period of the previous year. The 52-week average inflation for the week ended 29 August 2009 was 3.99 per cent.
 
The official wholesale price index for 'all commodities' (base: 1993-94 = 100) for the week under review rose 0.2 per cent to 241.1 (provisional) from 240.7  (provisional) for the previous week.

The index for the `primary articles' group rose 0.3 per cent to 271.2 (provisional) from 270.4 (provisional) for the previous week.

The index for the 'food articles' group rose 0.4 per cent to  273.8 (provisional) from 272.8 (provisional) for the previous week due to higher prices of eggs (4 per cent), fish-marine (2 per cent) and moong, fruits and vegetables and milk (1 per cent each). However, the prices of jowar, masur and gram (-1 per cent each) declined.

Among the primary articles group, the index for the 'non-food articles' group rose 0.2 per cent to 241.4 (provisional) from 241.0 (provisional) for the previous week due to higher prices of fodder (13 per cent), castor seed (3 per cent), raw rubber (2 per cent) and rape and mustard seed (1 per cent). However, the prices of linseed (-6 per cent), sunflower (-4 per cent), nigerseed (-3 per cent) and gingelly seed (-1 per cent) declined.