Inflation stays static

For continuous two weeks, the inflation rate had been witnessing a sharp rise. On March 11, it had touched 41-week high of 3.50 per cent mainly due to hefty rise in the prices of imported petroleum crude.

The prices of condiments, spices, canned juices, beer, pulp, sulphuric acid, fertilisers, copper, brass rods, boilers and broad gauge passenger carriages rose considerably, while tea, mutton, barley, logs, timber, tanning material, copra, rape seed, mustard seed cotton seed and coconut oil became cheaper during the week.

Many industrial houses felt that the five per cent rise in the freight charges coupled with budgetary proposals would give a boost to their industrial production cost which would give way to cost-push inflation rate in coming months, when these proposals become effective from April 1.

To add to the woes of common man, the Government hiked the petrol and diesel prices by 13 and 52 paise respectively on April 2.

To cut down the galloping oil pool deficit, the Government had no other alternative but to increase the diesel prices last year. This hike was mainly due to whopping international petroleum crude prices. The Government heaved a sigh of relief when the petroleum exporting countries decided to increase their production. This dip in the prices would help to a great extent in reducing the prices of crude. The Government expected to save $ 2.5 billion in its oil import bill.

A hefty 1.4 per cent drop in the index for non-food articles led to minute fall in the official wholesale price index for all commodities (base 1981-82) to 366.5 on March 25 after witnessing a steady rise for continuous three weeks. It was 366.6 in the previous week. This fall in the WPI was despite the significant increase in the indices of paper and paper products and chemicals and chemical products.

The final wholesale price index for all commodities (base 1981-82) stood at 364.8 on January 29 as against the provisional index of 364.9. The inflation rate based on final index worked out to 2.85 per cent in contrast to 2.88 per cent based on provisional index.

The inflation rate based on consumer price index for industrial workers jumped up by 0.99 per cent to 3.61 per cent in February compared to 2.62 per cent in the previous month. The inflation rate had touched its nadir in November last year when it touched zero per cent. It had been on the decline for the 11 months in succession since January 1999.

With condiments and spices prices shooting up by five per cent, vegetables prices up by two per cent, jowar, gram, moong and milk prices moved up by one per cent each, the index for food articles, under the primary articles group, went up by 0.1 per cent to 455.4 from 454.8 in the previous week. But tea became cheaper by six per cent, mutton prices slumped by five per cent, barley prices fell by three per cent, eggs prices declined by two per cent, wheat and maize prices came down by one per cent each.

As logs and timber prices plunged by 10 per cent, tanning material prices slumped by nine per cent, copra and fodder prices dropped by four per cent each, raw silk, rape seed, mustard seed prices slid by three per cent each, raw jute, linseed and raw skins prices dipped by two per cent each, the index for non-food articles took a downward curve by 1.4 per cent to 368.4 from 373.7. But gingelly seed became costlier by two per cent, raw cotton and groundnut prices moved up by one per cent each.

The index for food products, under the manufactured products group, rose marginally to 334.1 from 334 because canned juices became dearer by eight per cent, kardi oil and cotton seed oil prices increased by two per cent each, bread and gur prices up by one per cent each. But coconut oil became cheaper by six per cent, bran and poultry feed prices down by two per cent each, atta, groundnut oil and oil cakes prices dipped by one per cent each.

A three per cent hike in prices beer pushed up the index for beverages, tobacco and tobacco products by 0.1 per cent to 508.6 from 508.3, after remaining dormant for the consecutive 29 weeks.

A slender one per cent hike in prices of hessian cloth jacked upthe index for textiles marginally to 328 from 327.9.

With pulp prices shooting up by five per cent, printing whitepaper, map, litho paper up by two per cent each, cream laid woven paper, M.G. Paper poster and kraft paper prices up by one per cent each, the index for paper and paper products rose by 0.6 per cent to 403.5 from 401.