Business Daily from THE HINDU group of publications
Saturday, Jul 22, 2006
Agri-Biz & Commodities - Commodities
Cheaper food prices keep inflation on leash
At a glance
Primary articles group index down 0.5 per cent to 202 points.
Manufactured products group up 0.5 per cent to 176.8 points.
Sharp rise in epoxy resin prices by 301 per cent
New Delhi , July 21
The annual wholesale price index-based inflation rose 4.68 per cent during the week ended July 8, comparatively lower than the previous week's annual rise of 4.96 per cent. The drop in the inflation growth rate was mainly on account of a decline in food prices, including fruits, vegetables, pulses and milk products.
The wholesale price index (WPI) for all commodities ended the latest reported week at 203.6 points. The index was at 194.5 points a year ago. The inflation rate was up 4.46 per cent during the corresponding week of the previous year.
On a disaggregated basis, the primary articles group index was down 0.5 per cent to 202 points owing to cheaper prices of food articles. The index was 192.9 points during the corresponding week last year. The fuel power, light and lubricants group index remained unchanged at the previous week's level of 326.3 points. The index was at 304 points a year ago. The manufactured products group index was up 0.5 per cent to 176.8 points as prices rose for food, tobacco, textiles, paper, chemicals, metals and machinery products. The index was at 170.6 points during the same period a year ago.
Among the primary articles' group, the food articles group index dropped 0.8 per cent to 203.2 points due to lower prices of vegetables and milk (3 per cent each), fruits, moong, jowar and masur (1 per cent each). However, prices moved up for eggs, condiments and spices (3 per cent each), gram and maize (1 per cent each). Non-food articles group index was up 0.3 per cent to 183.9 points owing to increase in prices of niger seed (6 per cent), fodder, castor seed, groundnut seed and soyabean (1 per cent each).
Bread, buns dearer
Among the manufactured products' group, the food products' group index was up 0.2 per cent to 179.6 points due to rise in prices of bread and buns (7 per cent), atta (5 per cent), maida, sunflower oil, groundnut oil and butter (2 per cent each), khandsari, malted food and rice bran oil (1 per cent each). However, prices declined for bran (9 per cent), coconut oil (3 per cant) and gingelly oil and sooji (1 per cent each).
A six per cent increase in prices of beer and alcohol pushed up beverages, tobacco and tobacco products group index by 0.2 per cent to 235.3 points.
301% rise in epoxy resins
The chemicals and chemical products group index shot up by 1.4 per cent to 196.6 points owing to sharp increase in prices of epoxy resins (301 per cent), phenol (8 per cent), ammonium sulphate n-content (7 per cent) and enamels (1 per cent). Base metals alloys and metal products group index was up by 0.2 per cent to 226.3 points due to higher prices of other aluminium material and aluminium extrusion (5 per cent each), aluminium rolled products (4 per cent) and aluminium ingots (3 per cent), but lead ingots and zinc became cheaper by 1 per cent.
The machinery and machine tools group index rose by 0.3 per cent to 152 points due to 11 per cent increase in prices of boilers, its parts and accessories. But ceiling fans became cheaper by 6 per cent.
The Government revised upward the final inflation figure to 4.63 per cent for the week ended May 13, from the provisional 4.32 per cent while the WPI stood corrected at 201.1 points as compared to the earlier estimate of 200.5 points.
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