After the trust vote victory in the parliament, the inflation data released by Department of Economic Affairs (DEA), Ministry of Finance has provided some relief to UPA government as this week’s Wholesale Price Index (WPI) data has reported a slip down in inflation.
However, it skidded marginally by 0.02% from last week’s 13-years record high of 11.91 and is likely to be stable since now. But, the market experts are still concerned of high inflation ahead of the upcoming credit policy of Reserve Bank of India with chances of price hike in metal, cement and oils.
The DEA has released the WPI data on Thursday noon reporting that inflations has eased slightly by 0.02% standing at 11.89% calculated on point-to-point basis for the week ended on July 12 as against last week’s released report of 11.91% for the week ended on July 05. It was 4.76% on the same week last year, as per WPI reported.
This slackening of inflation was held due to slipping prices in some food articles including fish-marine, vegetables, tea, edible oils, condiments & spices and maize and edible oils non-ferrous metals, electrical gadgets, glass and earthenware while the prices of egg, fish and man-made cloth stood remain.
The Primary Articles group, which comprises ‘Food Article’ and ‘Non-Food Article’ has surged 0.6% on the back of price rise in Food Article by 0.6% and Non-Food Article by 0.8%.
In the Food Article group, the price surged in coffee (8%), fruits & vegetables, urad and mutton (2% each) and arhar, moong and jowar (1% each) while the price of fish-marine (3%), tea (2%) and condiments & spices and maize (1% each) have declined.
In the Non-Food Article group, sunflower and raw rubber (3% each), rape & mustard seed, castor seed and gingelly seed (2% each) and raw cotton (1%) became costlier.
The index for Manufactured Product article group has also gone up by 0.05% due to spiralling index of ‘Food Product’ group by 0.1%, ‘Machinery & Machine Tools’ group by 0.2, however the index of textile group declined by 0.1%.
The Union Finance Minister P Chidambaram on this data report has breathed deeply and said, “Inflation, on a week-on-week basis, has continued to remain stable. The WPI moved up only marginally from 238.7 in the week ending July 5, 2008 to 239.0 in the week ending July 12, 2008.”
“In the ‘primary article group’ out of a total of 98 articles, 10 articles have shown a decline in prices as compared to July 5, 2008 while another 54 articles have shown no increase in prices,” he added.
‘In the Commodity group, prices of all 19 articles remain unchanged while “The annual inflation rate for the group of 30 essential commodities continues to be range-bound. For the week ending July 12, 2008 it stands at 5.82 per cent,” the minister cited.
Describing on ‘Manufactured Product’ article group, he said, “Out of a total 318 commodities, a large number, 299 in all, have shown no increase in prices over the last week whereas 9 commodities shown decline,” Chidambaram said.
‘The bran oil, cottonseed oil, groundnut oil, imported edible oil, gur, texturised yarn, hessian bags and cloth and liquid vitamins have became cheaper this week, however, only 10 products became costlier including lead and zinc ingots, groundnut cake, tyre cord fabrics and rubber chemicals.’ as per he said.
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