Business & Economy

Inflation rate turns negative at -1.61 %

NetIndian News Network

New Delhi, June 18, 2009

The headline annual rate of inflation turned negative for the first time in more than three decades to touch -1.61 per cent for the week ended June 6 as compared to 0.13 per cent for the previous week.
The rate of inflation was 11.66 per cent in the corresponding week (ended June 7, 2008) last year, an official statement issued here today said, quoting provisional figures.
According to it, the official Wholesale Price Index for 'All Commodities' (Base: 1993-94 = 100) for the week ended June 6 rose by 0.04 percent to 232.7 (provisional) from 232.6 (provisional) for the previous week.
The index for Primary Articles, which have a weight of 22.02 per cent, declined by 0.7 percent to 256.0 from 257.7 for the previous week.
Within this category, the index for Food Articles declined by 1.2 percent to 250.8 from 253.9 for the previous week due to lower prices of fruits & vegetables (7%), fish-marine (2%) and urad and gram (1% each). However, the prices of arhar (7%), jowar and eggs (3% each), masur and maize (2% each) and moong, mutton, ragi, condiments & spices and bajra (1% each) moved up.
The index for Non-Food Articles rose by 0.7 percent to 235.9 from 234.3 for the previous week due to higher prices of soyabean (11%) and raw rubber and gingelly seed (1% each). However, the prices of copra (2%) and castor seed, raw silk and groundnut seed (1% each) declined.
The index for the category Fuel, Power, Light & Lubricants (weight 14.23 %), rose by 0.7 percent to 326.2 from 324.0 for the previous week due to higher prices of furnace oil and naphtha (7% each) and light diesel oil (4%). However, the prices of bitumen (3%) declined.
In the case of Manufactured Products, which have a weight of 63.75 %, the index rose by 0.1 percent to 203.8 from 203.5 for the previous week.
Within this category, the index for Food Products rose by 0.4 percent to 233.8 from 232.8 for the previous week due to higher prices of salt (10%) and rice bran oil, sugar and cotton seed oil (1% each). However, the prices of groundnut oil and imported edible oil (1% each) declined.
The index for Textiles rose by 0.2 percent to 141.7 from 141.4 for the previous week due to higher prices of polyester staple fibre (3%) and hessian cloth (1%).
The index for Rubber & Plastic Products rose by 1.1 percent to 167.9 from 166.0 for the previous week due to higher prices of tractor tyres (8%), motor tyres (4%) and giant tyres (2%).
The index for Basic Metals Alloys & Metal Products rose marginally to 255.4 from 255.3 for the previous week due to higher prices of lead ingots (4%) and foundry pig iron and basic pig iron (1% each). However, the prices of steel ingots (7%) and steel sheets, plates & strips and zinc ingots (1% each) declined.
According to the statement, the final wholesale price index for All Commodities for the week ended April 11 stood at 230.4 as compared to 228.8 provisionally reported on April 23. Accordingly, the annual rate of inflation based on the final index stood at 0.96 per cent as compared to 0.26 per cent (provisional) reported on that date, it said.
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