Marginal fall in inflation rate

The official Wholesale Price Index for 'All Commodities' (Base: 1993-94 = 100) for the week ended 29th August 2009 rose by 0.2 percent to 241.1 (Provisional) from 240.7 (Provisional) for the previous week.

The annual rate of inflation, calculated on point to point basis, stood at -0.12 percent (Provisional) for the week ended 29/08/2009 over (30/08/2008) as compared to -0.21 percent (Provisional) for the previous week (ended 22/08/2009) and 12.38 percent during the corresponding week (ended 30/08/2008 of the previous year. Build up inflation in the financial year so far was 5.47% compared to a build up of 6.48% in the corresponding period of the previous year. 52 week average inflation for the week ended 29/08/2009 was 3.99 %.

The movement of the index for the various commodity groups is summarized below:-

PRIMARY ARTICLES (Weight 22.02%)

The index for this major group rose by 0.3 percent to 271.2 (Provisional) from 270.4 (Provisional) for the previous week. The groups and items for which the index showed variations during the week are as follows:-

The index for 'Food Articles' group rose by 0.4 percent to 273.8 (Provisional) from 272.8 (Provisional) for the previous week due to higher prices of eggs (4%), fish-marine (2%) and moong, fruits & vegetables and milk (1% each). However, the prices of jowar, masur and gram (1% each) declined.

The index for 'Non-Food Articles' group rose by 0.2 percent to 241.4 (Provisional) from 241.0 (Provisional) for the previous week due to higher prices of fodder (13%), castor seed (3%), raw rubber (2%) and rape & mustard seed (1%). However, the prices of linseed (6%), sunflower (4%), niger seed (3%) and gingelly seed (1%) declined.

FUEL, POWER, LIGHT & LUBRICANTS (Weight 14.23%)

The index for this major group remained unchanged at its previous week's level of 343.3 (Provisional)

MANUFACTURED PRODUCTS (Weight 63.75%)

The index for this major group rose by 0.2 percent to 207.9 (Provisional) from 207.5 (Provisional) for the previous week. The groups and items for which the index showed variations during the week are as follows:-

The index for 'Food Products' group declined by 0.2 percent to 240.9 (Provisional) from 241.5 (Provisional) for the previous week due to lower prices of salt (4%) and sugar and cotton seed oil (1% each). However, the prices of soyabean oil (3%) and rice bran oil, ghee, groundnut oil and imported edible oil (1% each) moved up.

The index for 'Paper & Paper Products' group declined by 0.1 percent to 204.0 (Provisional) from 204.2 (Provisional) for the previous week due to lower prices of printing paper white (1%).

The index for 'Chemicals & Chemical Products' group rose by 1.3 percent to 229.4 (Provisional) from 226.4 (Provisional) for the previous week due to higher prices of household laundry soap (35%), synthetic detergent (17%), toilet soap and tooth paste (6% each) and carbon black (1%). However, the prices of synthetic resins (27%) declined.

The index for 'Non-Metallic Mineral Products' group declined by 0.4 percent to 224.1 (Provisional) from 225.0 (Provisional) for the previous week due to lower prices of cement (1%).

The index for 'Basic Metals Alloys & Metal Products' group declined by 0.1 percent to 255.4 (Provisional) from 255.6 (Provisional) for the previous week due to lower prices of ferro manganese (53%) and bolts & nuts (1%). However, the prices of lead ingots (6%), steel ingots (4%), aluminium ingots (2%) and zinc ingots (1%) moved up.

The index for 'Machinery & Machine Tools' group declined by 0.1 percent to 172.2 (Provisional) from 172.3 (Provisional) for the previous week due to lower prices of dry cell and complete tractors (1% each).

The index for 'Transport Equipment & Parts' group rose by 0.1 percent to 176.0 (Provisional) from 175.9 (Provisional) for the previous week due to higher prices of springs (8%). However, the prices of bicycles (1%) declined.

FINAL INDEX FOR THE WEEK ENDED 4th July 2009

For the week ended 04/07/2009, the final wholesale price index for 'All Commodities’ (Base:1993-94=100) stood at 237.5 as compared to 236.4 (Provisional) and annual rate of inflation based on final index, calculated on point to point basis, stood at -0.75 percent as compared to -1.21 percent (Provisional) reported earlier vide press note dated 16/07/2009, (EOM)