Inflation declines to 3.23% on low index of primary articles
Inflation declines to 3.23% on low index of primary articles India`s wholesale price index based Inflation rate dropped to 3.23% for the week ended September 15, against 3.32% in the previous week. Market had estimated inflation to stand at 3.47% for the said week.
The annual rate of inflation stood at 5.27% as on September 16, a year ago. Lower inflation have helped the economy to grow at 9.4% this fiscal year. The trend may reverse if government raises domestic petrol and diesel prices. Also, the Reserve Bank of India will be reviewing its monetary policy in the next month, taking into account the current scenario in the financial market and economy.
According to the official data provided on Sep. 28, 2007, index of primary articles declined 0.7% to 226.4 from 227.9 for the previous week. Prices of fish-marine and fish-inland, eggs, copra declined 11%, 5% and 3% respectively. While prices of poultry chicken, mutton, gingelly seed increased to 5%, 2% and 4% respectively.
While index of `Fuel, Power, Light & Lubricants ` rose 0.1% to 322.0 from 321.7 for the previous week due to higher prices of furnace oil of 2%.
There was spurt in prices of cottonseed oil, rap & mustard oil, staple fibre by 4%, 2%, and 3% respectively. On the other hand prices of coconut oil declined 4% and that of cord fabric moved down to 3%.
Prices of thinners rose 16%, resins and enamels moved up 7% and paints increased to 4%. Index for ` Non-Metallic Mineral Products ` group rose 0.1 % to 206.8 from 206.5 for the previous week due to higher prices of cement (+0.2%). However, the prices of asbestos cement corrugated sheets (1%) declined.
Under the category of ` Basic Metals Alloys & Metal Products`, zinc, aluminium ingots and barrel declined to 10%, 6%, and 5% respectively , while prices of steel furnitures (14%) and tin boxs/containers (3%) moved up.
Whereas under the category of ` Machinery & Machine Tools ` group rose 0.1% to 166.1 from 166.0 for the previous week due to higher prices of hydraulic pumps (3%).
