India's inflation rate eases to 9.97 % for July

India's headline annual rate of inflation, based on the monthly Wholesale Price Index (WPI), eased to 9.97 per cent for the month of July as compared to 10.55 per cent for the previous month, an official statement said here today, quoting provisional data.

The inflation rate was -0.54 per cent during the corresponding month of the previous year.

The official WPI for All Commodities (base: 1993-94 = 100) for the month of July, 2010 rose by 1 percent to 262.5 from 259.8 for the previous month, the statement said.

It said the build-up of inflation in the financial year so far was 3.59 per cent as compared to a build-up of 4.60 per cent in the corresponding period of the previous year.

Data released by the Government on August 12 said the food inflation rate had risen to 11.4 per cent in the year to July 31 from 9.53 per cent in the previous week, while fuel prices were 12.66 per cent up from a year ago.

The return of the food inflation rate to double digit levels after two weeks in single digit territory came at a time when the Government has faced a steady attack from the Opposition on the issue of rising food and fuel prices.

High prices of food items have been a cause of worry for the Government since the worst monsoon in more than three decades last year and floods in some states adversely affected the Kharif crop.

According to the figures released last Thursday, the prices of pulses were up 20.74 per cent from a year ago, milk by 19.03 per cent, fruits by 7.42 per cent, rice by 6.89 per cent, cereals by 6.97 per cent and wheat by 7.93 per cent.

Potatoes, on the other hand, were down 42.18 per cent, vegetables by 6.09 per cent and onions by 0.32 per cent.

Today's statement said that the food inflation rate was 14.16 per cent in July as far as Primary Articles were concerned. Among Manufactured Products, the food inflation rate was 4.12 per cent in the month.

Within the category of Primary Articles, which have a weight of 22.02 per cent in the WPI, the index for Food Articles rose by 0.9 per cent to 297.9 from 295.2 for the previous month due to higher prices of maize and poultry chicken (5% each), condiments & spices (4%), mutton (3%), urad, gram, milk, eggs, fish-inland, jowar and wheat (2% each) and bajra and rice (1% each). However, the prices of moong (4%), fruits & vegetables (2%) and coffee, masur, arhar and fish-marine (1% each) declined, the provisional data showed.

The index for Non-Food Articles rose by 0.8 percent to 288.7 from 286.4 for the previous month due to higher prices of raw rubber (7%), castor seed (5%), raw silk and fodder (4% each), groundnut seed (3%), raw jute, copra and sunflower (2% each) and rape & mustard seed, gingelly seed and tobacco (1% each). However, the prices of niger seed (3%), raw cotton (2%) and linseed (1%) declined.

The index for Minerals rose by 19.2 per cent to 861.8 from 722.7 for the previous month due to higher prices of iron ore (25%), magnesite (6%), steatite and fluorite (3% each) and asbestos (1%). However, the prices of manganese ore (32%), feldspar (4%) and barytes (1%) declined.

In the case of Fuel, Power, Light & Lubricants, which have a weight of 14.23 per cent in the WPI, the index rose by 3.2 per cent to 386.4 from 374.4 for the previous month due to higher prices of kerosene (24%), liquefied petroleum gas (8%), petrol (6%), high speed diesel oil (4%) and aviation turbine fuel (3%). However, the prices of furnace oil (2%) and naphtha and light diesel oil (1% each) declined.

The index for Manufactured Products, which have a weight of 63.75 per cent, declined by 0.1 per cent to 219.2 from 219.5 for the previous month.

Within this category, the index for Food Products declined by 0.6 per cent to 242.7 from 244.2 for the previous month due to lower prices of bran (all kinds) (6%), sugar and butter (3% each), khandsari (2%) and coffee powder and gur (1% each). However, the prices of sooji (rawa) (5%), groundnut oil and rice bran oil (4% each), imported edible oil and maida (3% each), cotton seed oil (2%) and coconut oil, atta, sugar & sweet meat confectionery, rape & mustard oil, biscuits and soyabean oil (1% each) moved up.

The index for Beverages Tobacco & Tobacco Products rose by 0.1 per cent to 325.6 (Provisional) from 325.4 (Provisional) for the previous month due to higher prices of beer & alcohol (2%). However, the prices of potable country liquor (1%) declined.

The index for Textiles declined by 0.4 per cent to 163.6 from 164.2 for the previous month due to lower prices of hessian cloth (14%), hessian & sacking bags (3%), other cotton yarn (2%) and polyester staple fibre and nylon filament yarn (1% each). However, the prices of texturised yarn (3%), synthetic yarn (2%) and cotton yarn-cones and cotton yarn-hanks (1% each) moved up.

The index for Paper & Paper Products declined by 0.4 per cent to 207 from 207.8 for the previous month due to lower prices of kraft paper (2%).

The index for Rubber & Plastic Products rose by 0.1 per cent to 180.8 from 180.7 for the previous month due to higher prices of plastic containers (2%) and suitcases (1%). However, the prices of pvc fitting & accessories (3%) declined.

The index for Chemicals & Chemical Products rose by 0.4 per cent to 240.4 from 239.5 for the previous month due to higher prices of epoxy resins (44%), liquid chlorine (7%), liquid oral other than vitamins and synthetic resins (2% each) and syrup, urea n_content, liquid injectables other than vitamins, carbon black and resins(all kinds) (1% each). However, the prices of benzene (8%), p.v.c. resins (5%), purified terephthalic acid (pta) (4%), caustic soda (3%) and vitamin tablets, pesticides and acid (all kinds) (1% each) declined.

The index for Non-Metallic Mineral Products declined by 1.6 per cent to 215.8 from 219.2 for the previous month due to lower prices of cement (2%). However, the prices of ceramic tiles (4%) moved up.

The index for Basic Metals Alloys & Metal Products declined by 0.2 per cent to 285.1 from 285.8 for the previous month due to lower prices of ms bars & rounds (7%), other iron steel (6%), steel sheets, plates & strips (2%) and pipes & tubes, foundry pig iron, zinc and basic pig iron (1% each). However, the prices of lead ingots and zinc ingots (2% each) moved up.

The index for Machinery & Machine Tools rose by 0.5 per cent to 179.5 from 178.6 for the previous month due to higher prices of telephone instruments (16%), ring spinning & doubling frames (10%), textile machinery parts (5%), carding machine (4%), rubber insulated cables (3%), other textile machinery, other cables, tractor components & accessories and valve (all types) (2% each) and components & accessories of switch gears, p.v.c. insulated cables, cranes, electric motors, complete engines and power driven pumps (1% each). However, the prices of material handling equipment (6%), enamelled copper wires (3%), electrical generators (2%) and other pumps (1%) declined.

The index for Transport Equipment & Parts rose by 0.2 per cent to 179.9 from 179.5 for the previous month due to higher prices of truck chassis (diesel) and motorcycles (1% each).

The statement said the final WPI for May 2010 stood at 260.4 as compared to 258.1 reported provisionally on July 14. Accordingly, the annual rate of inflation based on the final index stood at 11.14 per cent as against 10.16 reported provisionally on that date, it added.

NNN