Inflation rate dips to 0.48 %

The headline annual inflation rate dipped to 0.48 per cent for the week ended May 2 as compared to 0.70 per cent in the previous week, an official statement said today, quoting provisional figures.

The inflation rate was 8.73 per cent in the corresponding week a year ago, ended May 3, 2008.

According to the statement, the official Wholesale Price Index for ‘All Commodities’ (Base: 1993-94 = 100) for the week ended May 2 rose by 0.4 percent to 231.6 (Provisional) from 230.7 (Provisional) for the previous week.

The index for the Primary Articles category, which has a weight of 22.02 % in the index, rose by 0.4 percent to 254.7 from 253.7 for the previous week.

Within this category, the index for Food Articles rose by 0.3 percent to 250.0 from 249.3 for the previous week due to higher prices of ragi (17%), tea (2%) and bajra, maize, fruits & vegetables and urad (1% each).

The index for Non-Food Articles rose by 0.8 percent to 233.3 from 231.5 for the previous week due to higher prices of raw wool (24%), raw rubber and sunflower (6% each), raw cotton (2%) and copra (1%). However, the prices of raw silk (2%) and tobacco (1%) declined.

In the Fuel, Power, Light and Lubricants category, with a weight of 14.23 %, the index rose by 0.2 percent to 323.7 from 323.0 for the previous week due to higher prices of furnace oil and naphtha (3% each) and light diesel oil (1%). However, the prices of bitumen and aviation turbine fuel (1% each) declined.

The inded for Manufactured Products, which have a weight of 63.75 %, rose by 0.4 percent to 203.0 from 202.2 for the previous week.

Within this category, the index Food Products rose by 0.7 percent to 230.5 from 228.9 for the previous week due to higher prices of imported edible oil (4%) and sugar (3%). However, the prices of groundnut oil, rice bran oil, gingelly oil and gur (1% each) declined.

The index for Chemicals & Chemical Products rose by 1.3 percent to 217.6 from 214.9 for the previous week due to higher prices of pesticides (33%), benzene (27%), calcium ammonium nitrate n-content (24%) and purified terephthalic acid (pta) (11%). However, the prices of p.v.c. resin (6%) and methanol (2%) declined.

The index for Basic Metals Alloys & Metal Products rose by 0.1 percent to 255.5 from 255.2 for the previous week due to higher prices of other iron steel (3%) and foundry pig iron and basic pig iron (2% each). However, the prices of lead ingots (4%) and zinc (2%) declined.

The index for Transport Equipment & Parts declined by 0.2 percent to 175.2 from 175.5 for the previous week due to lower prices of car chassis (assembled) (1%).

For the week ended March 7, the final wholesale price index for 'All Commodities’ (Base:1993-94=100) stood at 227.7 as compared to 226.7 (Provisional) and the annual rate of inflation based on the final index, calculated on point to point basis, stood at 0.89 percent as compared to 0.44 percent (Provisional) reported earlier on March 19, the statement added.

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