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Wednesday, October 25, 2000

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Macro Economy | Prev


INFLATION WATCH

S.D. Naik

THE annual rate of inflation measured in terms of the wholesale price index (WPI) on a point-to-point basis declined to 7.03 per cent for the latest recorded week ended October 7.

The inflation rate had recorded a sharp jump of 1.5 per cent and touched a two-year high of 7.56 per cent for the week ended September 30. The marginal decline in the inflation rate during the latest week is on account of a moderate decline in the inflat ion rate for the fuel group from 36.93 per cent to 30.56 per cent during the week.

However, the inflation rate for the primary articles group has moved up to 2.26 per cent from 1.06 per cent during the week.

The inflation rate during the corresponding week of last year (October 9, 1999) was 3.53 per cent based on final data. Thus, the current inflation rate is about twice that prevailing a year ago.

The inflation rate based on consumer price index for industrial workers (CPI-IW) declined to 4.0 per cent for the month of August 2000 from 4.95 per cent in July. It was 3.1 per cent in the month of August 1999.

The inflation rate based on consumer price index for urban non-manual employees (CPI-UNME) declined to 5.1 per cent for the month of August 2000 from 5.7 per cent in July. It was 4.5 per cent in August 1999.

The inflation rate based on consumer price index for agricultural labourers (CPI-AL) dropped to zero per cent for the month of August 2000 from 2.0 per cent in July. It was 5.1 per cent for the month of August 1999.

The major price movements for the latest week were for fruits & vegetables and poultry chicken (up six per cent), tea (up five per cent), inland fish (up three per cent), fodder (up three per cent), groundnut seed (up two per cent), coke (up 43 per cent) , high speed diesel (up two per cent), solvent extracted groundnut oil (up nine per cent), sunflower oil (up five per cent), gur (up two per cent), tyre cord fabrics (up three per cent), PTA (up two per cent), excavators (up four per cent), marine fish ( down seven per cent), jowar (down four per cent), bajra and mutton (down two per cent), mesta (down seven per cent), gingelly seed (down five per cent), raw jute (down two per cent), rice bran oil (down four per cent), barrels (down seven per cent), and tin boxes/containers (down two per cent).

The official WPI for all commodities (1993-94 = 100) for the week ended October 7, 2000 moved up to 156.9 from 156.5 in the preceding week.

The final WPI for all commodities (1993-94 = 100) for the week ended August 12 stood at 153.3 against the provisional index of 152.9 given earlier. Thus, the annual rate of inflation based on final data in terms of the WPI calculated on a point-to-point basis for the week ended August 12 was 6.31 per cent against 6.03 per cent based on provisional data.

Over a period of four weeks (September 9 to October 7), the index rose for vegetables by 19.2 per cent, oilseeds three per cent, mineral oils 17.9 per cent, and drugs & medicines by 4.9 per cent. Over the same period, the index declined for wine industri es by 2.5 per cent.

As for the recent commodity price movements, groundnut oil was quoted in Mumbai market on October 23 at Rs 375 per 10 kg against Rs 396 on October 16. Among supplementary oils, imported palmolein was quoted at Rs 199.50 per 10 kg on October 23 against Rs 193 on October 16.

Sugar prices displayed a subdued trend as compared to last week on the Navi Mumbai wholesale market. In spot deals on October 23, S-30 variety was quoted at Rs 1,490/1,515 per quintal while M-30 variety was quoted at Rs 1,515/1,545 per quintal.

In metals, nickel price recorded a sharp fall of Rs 5 per kg to Rs 505 in Mumbai market on October 23 following a fall in prices on the London Metal Exchange (LME).

In bullion, standard gold was quoted in Mumbai market on October 23 at Rs 4,560 per 10 gm against Rs 4,550 on October 16. Silver .999 was quoted at Rs 8,090 per kg on October 23 against Rs 8,100 on October 16.

Related links:
INFLATION WATCH
Inflation Watch
Inflation Watch

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