Business & Economy

India's inflation rate for March rises marginally to 9.90 %

NetIndian News Network

New Delhi, April 15, 2010

India's headline annual rate of inflation for March, based on the monthly Wholesale Price Index (WPI), rose marginally to 9.90 per cent from 9.89 per cent for the previous month as food prices continued to remain firm.

The rate of inflation was 1.20 per cent during the corresponding month of the previous year.

The official WPI for All Commodities (base: 1993-94=100) for March rose by 0.3 per cent to 250.8 from 250.1 for the previous month.

The food inflation rate declined slightly to 17.22 per cent in the year to April 3 from 17.70 per cent in the previous week, while fuel prices were up 12.43 per cent from a year ago, provisional data released today said.

Rising prices of food products have been a source of worry for the Government after the worst monsoon in more than three decades last year and floods in some states adversely affected the Kharif crop.

The Government has taken various steps to bring the prices under control, but their impact is yet to be fully felt by the common man.

According to the figures released today, the prices were pulses were upby 32.55 per cent during the week from a year ago, milk by 22.21 per cent, cereals by 10.21 per cent, rice by 8.45 per cent, wheat by 12.42 per cent and fruits by 11.96 per cent.

But the prices of potatoes had come down by 23.71 per cent and onions by 2.5 per cent.

The food inflation rate was 16.65 per cent in March as far as Primary Articles were concerned. Among Manufactured Products, the food inflation rate was 16.98 per cent in the month.

The index for Primary Articles, which have a weight of 22.02 per cent in the WPI, declined by 0.5 per cent to 283.2 from 284.7 for the previous month.

Within this group, the index for Food Articles declined by 0.6 per cent to 284.4 from 286.1 for the previous month due to lower prices of tea (12%), arhar and masur (6% each), fruits & vegetables (5%), gram and eggs (4% each), urad (3%), condiments & spices (2%) and bajra, wheat, maize, rice and fish-inland (1% each). However, the prices of poultry chicken (5%), pork (4%), milk (3%) and jowar, barley, coffee and moong (1% each) moved up.

The index for Non-Food Articles declined by 0.8 per cent to 254.4 from 256.5 for the previous month due to lower prices of niger seed (13%), hides (raw) (11%), soyabean (7%), sunflower and rape & mustard seed (4% each), logs & timber, groundnut seed, copra, raw silk, tobacco and linseed (2% each). However, the prices of coir fibre (10%), raw rubber (9%), skins (raw) (7%), mesta (6%), raw jute (4%), tanning materials (3%), and raw cotton (1%) moved up.

The index for Minerals rose by 2.4 per cent to 610.5 from 596.3 for the previous month due to higher prices of chromite (12%), barytes and fire clay (5% each), iron ore (3%) and asbestos (1%). However, the prices of magnesite (36%) and felspar (4%) declined.

The index for Fuel, Power, Light & Lubricants, which have a weight of 14.23 per cent, rose by 1.4 per cent to 361.8 from 356.9 for the previous month due to higher prices of high speed diesel oil (6%), petrol (5%), aviation turbine fuel and light diesel oil (4% each), bitumen (2%) and furnace oil (1%). However, the prices of naphtha (3%) declined.

The index for Manufactured Products, which have a weight of 63.75 per cent in the WPI, rose by 0.3 per cent to 214.9 from 214.3 for the previous month.

Within this important category, the index for Food Products declined by 1.2 per cent to 257.0 from 260.0 for the previous month due to lower prices of sunflower oil (10%), hydrogenated vanaspati (5%), sugar (4%), oil cakes (2%) and malted food, groundnut oil and bran (all kinds) (1% each).

However, the prices of bread & buns (9%), sooji(rawa) (7%), atta (6%), cotton seed oil and maida (5% each), khandsari and gingelly oil (4% each), cattle feed, coffee powder, imported edible oil, coconut oil, rape & mustard oil and soyabean oil (2% each) and ghee, butter and rice bran oil (1% each) moved up.

The index for Beverages Tobacco & Tobacco Products rose by 2.4 per cent to 319.9 from 312.3 for the previous month due to higher prices of cigarettes (6 %), soft drinks (all kinds) (3%) and aerated water (2%). However, the prices of potable country liquor (1%) declined.

The index for Textiles rose by 0.8 per cent to 155.8 from 154.6 for the previous month due to higher prices of hessian cloth (8%), hessian & sacking bags (5%) and synthetic yarn and texturised yarn (1% each).

The index for Paper & Paper Products rose by 0.1 per cent to 204.5 from 204.2 for the previous month due to higher prices of printing paper white (1%).

The index for Rubber & Plastic Products rose by 0.2 per cent to 175.3 from 174.9 for the previous month due to higher prices of pvc fitting & accessories (3%), motor tyres (2%) and plastic items and cycle tubes (1% each). However, the prices of giant tyres (1 %) declined.

The index for Chemicals & Chemical Products rose by 0.6 per cent to 232.6 from 231.1 for the previous month due to higher prices of phenol (33%), acid( all kinds) (20%), super phosphate p 205 content (13%), organic pigments (8%), hair oil and synthetic resins (7% each), synthetic rubber, pigments and printing ink (6% each), varnishes and polystyrene (5% each), medical x-ray films, roll films and cine colour positive (4% each), rubber chemicals and tape for blank cassettes (3% each), safety matches, synthetic detergent and bopp film (2% each) and ayurvedic medicine, vitamin liquids, sulpha methoxozole, monocrotophos, purified terephthalic acid (pta) and toilet soap (1% each).

However, the prices of methanol (7%), complex fertilizer n-content and complex fertilizers-npk content (6% each), household laundry soap (5%), caustic soda and fireworks (4% each), benzene and blasting powder (3% each), syrup, soda ash and endosulfan (2% each) and oxygen gas in cylinder, ointments, oxygen and tablets except vitamin & penicillin (1% each) declined.

The index for Non-Metallic Mineral Products rose by 2.2 per cent to 219.6 from 214.9 for the previous month due to higher prices of asbestos cement corrugated sheets (9%) and cement (3%).

The index for Basic Metals Alloys & Metal Products declined by 1.0 per cent to 259.1 from 261.7 for the previous month due to lower prices of aluminum bars & rods (26%), other aluminum material (10%), aluminum sheets & strips (7%), bright bars and aluminum ingots (6% each) and pipes & tubes and bars & rods (1% each).

However, the prices of steel ingots (8%), zinc ingots (6%), other iron steel (3%) and ms bars & rounds, cast iron casting, steel sheets, plates & strips and alloy steel casting (1% each) moved up

The index for Machinery & Machine Tools rose by 3.0 per cent to 178.0 from 172.8 for the previous month due to higher prices of switch gears (28%), p.v.c. insulated cables (21%), furnaces (15%), electric motors: phase three (14%), electric motors: phase one (7%), boilers - its parts & accessories, complete tractors and electric motors (5% each), other pumps (3%), enamelled copper wire, powerlooms - automatic and ball bearings (2% each) and other electrical equipment & systems and batteries (1% each).

However, the prices of fluorescent tubes (18%), gls lamps (10%), mono block pumps (7%), ceiling fans (4%) and picture tubes (colour) (3%) declined.

The index for Transport Equipment & Parts rose by 0.2 per cent to 176.2 from 175.8 for the previous month due to higher prices of car chassis (assembled) (1%).

The statement said that the final WPI for January, 2010 stood at 250.5 as compared to 248.5 as reported provisionally on March 15. Accordingly, the annual rate of inflation, based on the final index, stood at 9.44 per cent as compared to 8.56 per cent reported provisionally on March 15, it added.

NNN

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