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India's inflation rate eases to 6.62%

Posted on Feb 14, 07:10PM | IBNS

New Delhi, Feb 14 : India's inflation rate based on wholesale prices declined to 6.62% in January, revealed government figures on Thursday. The official Wholesale Price Index (WPI) for 'All Commodities' (Base: 2004-05 = 100) for the month January, 2013 rose by 0.4 percent to 169.2 (Provisional) from 168.6 (Provisional) for the previous month. INFLATION The annual rate of inflation, based on monthly WPI, stood at 6.62% (Provisional) for the month of January, 2013 (over January, 2012) as compared to 7.18% (Provisional) for the previous month and 7.23% during the corresponding month of the previous year.

Build up inflation in the financial year so far was 5.09% compared to a build up of 6.15% in the corresponding period of the previous year.

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

PRIMARY ARTICLES (Weight 20.12%)

The index for this major group rose by 0.6 percent to 221.4 (Provisional) from 220.0 (Provisional) for the previous month. The groups and items which showed variations during the month are as follows:-

The index for 'Food Articles' group rose by 0.8 percent to 213.8 (Provisional) from 212.2 (Provisional) for the previous month due to higher price of poultry chicken (21%), condiments & spices and bajra (4% each), maize (3 %), egg, fish-marine and fish-inland (2% each) and moong, jowar, mutton and urad (1% each). However, the price of gram (3%), coffee (2%) and arhar, ragi and tea (1% each) declined.

The index for 'Non-Food Articles' group declined by 0.3 percent to 202.3 (Provisional) from 202.9 (Provisional) for the previous month due to lower price of flowers (14%), cotton seed (3%), rape & mustard seed and fodder (2% each) and raw cotton and linseed (1% each). However, the price of gingelly seed (16%), niger seed (6%), copra and raw jute (5% each), castor seed (4%), groundnut seed (2%) and raw silk and logs & timber (1% each) moved up.

The index for 'Minerals' group rose by 1.8 percent to 347.0 (Provisional) from 340.8 (Provisional) for the previous month due to higher price of barytes (47%), sillimanite (19%), iron ore (4%) and crude petroleum (1%). However, the price of zinc concentrate (7%), magnesite (3%) and copper ore (1%) declined.

FUEL & POWER (Weight 14.91%)

The index for this major group rose by 0.3 percent to 189.5 (Provisional) from 188.9 (Provisional) for the previous month due to higher price of bitumen (6%), light diesel oil and furnace oil (1% each). However, the price of aviation turbine fuel (1%) declined.

MANUFACTURED PRODUCTS (Weight 64.97%)

The index for this major group rose by 0.2 percent to 148.3 (Provisional) from 148.0 (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 declined by 0.7 percent to 165.9 (Provisional) from 167.1 (Provisional) for the previous month due to lower price of gur (5%), sugar and palm oil (3% each), cotton seed oil, oil cakes, khandsari and gola (cattle feed) (2% each) and sooji (rawa), tea dust (unblended) and tea leaf (blended) (1% each). However, the price of coffee powder (14%), gingelly oil (5%), wheat flour (atta) (3%) and canned fish and bakery products (1% each) moved up.

The index for 'Beverages, Tobacco & Tobacco Products' group rose by 0.2 percent to 177.0 (Provisional) from 176.6 (Provisional) for the previous month due to higher price of soft drinks & carbonated water (2%) and dried tobacco (1%).

The index for 'Textiles' group rose by 0.9 percent to 133.4 (Provisional) from 132.2 (Provisional) for the previous month due to higher price of man made fibre, man made fabric and woollen textiles (2% each) and jute sacking cloth (1%). However, the price of gunny and hessian cloth (2%) and tyre cord fabric (1%) declined.

The index for 'Wood & Wood Products' group rose by 1.2 percent to 174.4 (Provisional) from 172.3 (Provisional) for the previous month due to higher price of plywood & fibre board (2%).

The index for 'Paper & Paper Products' group rose by 0.4 percent to 137.8 (Provisional) from 137.2 (Provisional) for the previous month due to higher price of computer stationery (7%), kraft paper & bags (2%) and corrugated sheet boxes and cream laid woven paper (1% each). However, the price of paper rolls and paper cartons / boxes (1 % each) declined.

The index for 'Leather & Leather Products' group rose by 0.5 percent to 135.7 (Provisional) from 135.0 (Provisional) for the previous month due to higher price of leather footwear (1%).

The index for 'Rubber & Plastic Products' group rose by 0.1 percent to 138.3 (Provisional) from 138.1 (Provisional) for the previous month due to higher price of tooth brush (3%) and hdpe woven fabric (2%).

The index for 'Chemicals & Chemical Products' group rose by 0.6 percent to 144.9 (Provisional) from 144.0 (Provisional) for the previous month due to higher price of organic manure (12%), explosives (6%), di ammonium phosphate (4%), turpentine oil (2%) and non-cyclic compound, hair / body oils, ayurvedic medicines and vitamins (1% each). However, the price of ammonium sulphate (5%) and antibiotics and safety matches/ match box (1% each) declined.

The index for 'Basic Metals, Alloys & Metal Products' group rose by 0.2 percent to 166.0 (Provisional) from 165.7 (Provisional) for the previous month due to higher price of pencil ingots (5%), ferro chrome (2%) and lead, aluminium and zinc (1% each). However, the price of copper wire (all types) (4%), angles (2%) and pig iron, wire rods, metal containers, silver and iron & steel wire (1% each) declined.

The index for 'Machinery & Machine Tools' group rose by 0.2 percent to 129.1 (Provisional) from 128.9 (Provisional) for the previous month due to higher price of grinding /wet coffee machinery and textile machinery (3 % each), fibre optic cable (2%) and fans, insulators, control equipments, material handling equipments and electrical pumps (1% each). However, the price of industrial furnaces and engines (2% each) and electric motors and ball/roller bearing (1% each) declined.

The index for 'Transport, Equipment & Parts' group rose by 0.2 percent to 131.3 (Provisional) from 131.0 (Provisional) for the previous month due to higher price of auto rickshaw / tempo / matador (1%).

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

For the month of November, 2012, the final Wholesale Price Index for 'All Commodities' (Base: 2004-05=100) and annual rate of inflation remained unchanged at its provisional level of 168.8 and 7.24 percent respectively as reported on 14.12.2012.