Inflation nears seven per cent mark

NEW DELHI, NOV 12: However, it was 3.22 per cent during the corresponding week last year (October 30, 1999). The recent negligible 0.14 pe...

NEW DELHI, NOV 12: However, it was 3.22 per cent during the corresponding week last year (October 30, 1999). The recent negligible 0.14 per cent jump in the inflation rate was mainly due to spurt in prices of manufactured products such as coconut oil, texturised yarn, woollen yarn, viscose staple fibre, phenol, blasting powder, basic pig iron, tensil, plate angles, channels, CR sheets, electrical apparatus and appliances.

After it had touched the 97-week high of 7.56 per cent on September 30, the inflation rate had been showing a declining trend for continuous three weeks. Institute of Economic Growth (IEG) said that due to spiralling prices of petroleum products the inflation rate might touch nine per cent mark by the end of November. Due to significant increase in the indices of textiles, basic metals, alloys and metal products, machinery and machine tools and transport equipment and parts, the wholesale price index for all commodities (base 1993-94) rose by 0.1 per cent to 157.7 on October 28 from 157.5 in the previous week.

The wpi had been witnessing a rise for 12 consecutive weeks since August 12. The final wholesale price index for all commodities(base1993-94) stood at 154.2 on September two as against the provisional index of 153.5. The final inflation rate calculated on final index worked out to 6.13 per cent as against 5.64 per cent based on provisional index. In contrast, the inflation rate based on consumer price index for industrial workers which is the real picture of retail prices plunged by 0.49 per cent to 3.50 per cent in September from 3.99 per cent in the previous month.

The index for food articles, under the primary articles group, remained unchanged at its previous week’s level of 173.5 because five per cent climb in fish(marine)prices, three per cent increase in poultry chicken prices, two per cent hike in milk prices, one per cent rise in barley and moong prices neutralised with the six per cent decline in fish(inland) prices, four per cent drop in eggs prices, three per cent slump in beef and buffalo meat prices, two per cent fall in ragi, fruits and vegetables prices, one per cent dip in prices of rice, jowar, bajra, urad, pork, condiments and spices and tea.