Inflation dips on cheaper manufactured items

Our Economy Bureau
05 March 2005

The annual wholesale price index-based inflation fell to a nine-month low of 4.83 per cent during the week ended February 19, from 5.01 per cent registered during the previous week.

The fall in the year-on-year inflation was largely on account of cheaper edible oils, vegetables and a fall in prices of some of the manufactured products, according to data released yesterday by the ministry of commerce and industry

The WPI, however, remained unchanged at 188.8 points despite costlier primary items and cheaper manufactured products, even as fuel prices stood firm for the second consecutive week.

The index of Primary Articles'' group was up by 0.2 per cent to 185.8 points due to rise in the prices of both food and non-food articles. The index for fuel, power, light and lubricants group remained unchanged for the second consecutive week at the previous week''s level of 288.9 points. The heavy-weight ''manufactured products'' group declined by 0.1 per cent to 167.5 points due to fall in textile, rubber basic metals, machinery prices, while chemicals, non-metallic mineral and transport equipments turned costlier.

Among the ''primary articles'' group'', the ''food articles'' group index rose by 0.2 per cent to 185.2 points due to higher prices of coffee (22 per cent), fish-marine (three per cent), bajra (two per cent) and tea, fruits, condiments and spices, jowar, moong and urad (one per cent each). Vegetables, however, turned cheaper by 0.6 per cent.

The ''non-food articles'' group index was up by 0.4 per cent to 180.6 points due to higher prices of soyabean (five per cent), raw silk (three per cent), gingelly seed and raw jute (two per cent), sunflower and linseed (one per cent each).