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At 7.24 pc , inflation lowest in 10 months

Posted on Dec 14, 01:45PM | IBNS

The annual rate of inflation in India, based on monthly Wholesale Price Index (WPI), stood at 7.24 percent for November, 2012, which is lowest in ten months.

The rate of this November (over November, 2011) as compared to 7.45pc (Provisional) for the previous month and 9.46pc during the corresponding month of the previous year is good news for the economy but experts said it is still not positive enough for the RBI to cut interest rates next week.

Build up inflation in the financial year so far was 4.84pc compared to a build up of 5.28pc in the corresponding period of the previous year.

The official Wholesale Price Index for 'All Commodities' (Base: 2004-05 = 100) for the month November, 2012 rose by 0.1 percent to 168.8 (Provisional) from 168.7 (Provisional) for the previous month.

PRIMARY ARTICLES (Weight 20.12pc )

The index for this major group rose by 0.3 percent to 220.8 (Provisional) from 220.2 (Provisional) for the previous month. The groups and items for which the index showed variations during the month are as follows:-

The index for 'Food Articles' group rose by 0.3 percent to 213.2 (Provisional) from 212.5 (Provisional) for the previous month due to higher prices of ragi (10pc ), bajra (5pc ), barley (3pc ), wheat and fish-marine (2pc each) and fish-inland, mutton, gram, maize and fruits and vegetables (1pc each). However, the prices of poultry chicken (8pc ), coffee and jowar (4pc each), urad (3pc ), tea (2pc ) and arhar(1pc ) declined.

The index for 'Non-Food Articles' group rose by 1.8 percent to 201.3 (Provisional) from 197.7 (Provisional) for the previous month due to higher prices of flowers (16pc ), soyabean (6pc ), groundnut seed and mesta (5pc each), linseed and rape and mustard seed (3pc each), copra, castor seed and fodder (2pc each) and sunflower, tobacco, raw cotton and coir fibre (1pc each). However, the prices ofniger seed (7pc ), raw rubber (6pc ), raw jute (3pc ), raw silk and gingelly seed (2 pc each) declined.


The index for 'Minerals' group declined by 2.4 percent to 347.1 (Provisional) from 355.8 (Provisional) for the previous month due to lower prices of copper ore (5pc ), sillimanite (4pc ), barytes and crude petroleum (3pc each), iron ore and bauxite (2pc each) and steatite (1pc ). However, the prices of magnesite (14pc ), zinc concentrate (8pc ), gypsum (4pc ) and limestone (1pc ) moved up.


FUEL and POWER (Weight 14.91pc )


The index for this major group declined by 0.6 percent to 188.8 (Provisional) from 189.9 (Provisional) for the previous month due to lower prices of bitumen and furnace oil (4pc each), naphtha (3pc ), light diesel oil (2pc ) and petrol and aviation turbine fuel (1pc each). However, the prices of lpg (2pc ) moved up.

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MANUFACTURED PRODUCTS (Weight 64.97pc )


The index for this major group rose by 0.1 percent to 148.0 (Provisional) from 147.9 (Provisional) for the previous month. The groups and items for which the index showed variations during the month are as follows:-


The index for 'Food Products' group rose by 0.6 percent to 167.7 (Provisional) from 166.7 (Provisional) for the previous month due to higher prices of tea dust (unblended) (7pc ), sooji (rawa) (5pc ), gola (cattle feed), oil cakes and maida (4pc each), wheat flour (atta) and groundnut oil (3pc each), processed prawn, bakery products and tea leaf (unblended) (2pc each) and sugar confectionary, copra oil, cotton seed oil and rice bran oil (1pc each). However, the prices of gur (7pc ), khandsari (3pc ), mixed spices, tea leaf (blended) and palm oil (2pc each) and sugar and gram powder (besan) (1pc each) declined.


The index for 'Beverages, Tobacco and Tobacco Products' group rose by 0.6 percent to 176.7 (Provisional) from 175.6 (Provisional) for the previous month due to higher prices of dried tobacco (14pc ) and rectified spirit (2pc ). However, the prices of zarda (2pc ) declined.


The index for 'Textiles' group rose by 0.2 percent to 131.8 (Provisional) from 131.6 (Provisional) for the previous month due to higher prices of woollen textiles (3pc ), jute sacking cloth (2pc ) and tyre cord fabric, jute sacking bag, man made fabric and jute yarn (1pc each).


The index for 'Wood and Wood Products' group rose by 0.2 percent to 172.1 (Provisional) from 171.7 (Provisional) for the previous month due to higher prices of insulation board (1pc ).


The index for 'Paper and Paper Products' group rose by 0.1 percent to 136.7 (Provisional) from 136.5 (Provisional) for the previous month due to higher prices of books/ periodicals/ journals (2pc ). However, the prices of paper cartons / boxes (2pc ) and maplitho paper (1pc ) declined.


The index for 'Leather and Leather Products' group declined by 0.4 percent to 133.5 (Provisional) from 134.1 (Provisional) for the previous month due to lower prices of leathers and leather footwear (1pc each).


The index for 'Rubber and Plastic Products' group rose by 0.1 percent to 138.0 (Provisional) from 137.9 (Provisional) for the previous month due to higher prices of rubber transmission belt (5pc ), plastic bottles (4pc ) and plastic/pvc pipe and plastic/ldpe/polythene bag (1pc each).


The index for 'Chemicals and Chemical Products' group declined by 0.1 percent to 143.9 (Provisional) from 144.1 (Provisional) for the previous month due to lower prices of chlorine (13pc ), castor oil (2pc ) and turpentine oil, pesticides, photographic goods and basic organic chemicals (1pc each). However, the prices of organic manure (2pc ) and rubber chemicals (1pc ) moved up.


The index for 'Non-Metallic Mineral Products' group declined by 0.8 percent to 163.5 (Provisional) from 164.8 (Provisional) for the previous month due to lower prices of grey cement and bricks and tiles (1pc each). However, the prices of glass bottles and bottleware (1pc ) moved up.


The index for 'Basic Metals, Alloys and Metal Products' group declined by 0.2 percent to 166.4 (Provisional) from 166.8 (Provisional) for the previous month due to lower prices of steel rods (3pc ) and pencil ingots, gp/gc sheets, steel: pipes and tubes, melting scrap, rebars, pipes/tubes/rods/strips, joist and beams, copper products (other than wire) and angles (1pc each). However, the prices of sponge iron, pressure cooker and ferro chrome (1pc each) moved up.


The index for 'Transport, Equipment and Parts' group rose by 0.3 percent to 130.5 (Provisional) from 130.1 (Provisional) for the previous month due to higher prices of bus / mini bus / truck (1pc ). However, the prices of bi-cycles (1pc ) declined.

FINAL INDEX FOR THE MONTH OF SEPTEMBER , 2012 (BASE YEAR: 2004-05=100)


For the month of September, 2012, the final Wholesale Price Index for 'All Commodities' (Base: 2004-05=100) stood at 168.8 as compared to 168.4 (provisional) and annual rate of inflation based on final index stood at 8.07 percent as compared to 7.81 percent respectively as reported on 15.10.2012.