Inflation rises to 6.28%

Inflation rises to 6.28%
PRESS TRUST OF INDIA

NEW DELHI, JULY 2: Inflation based on Wholesale Price Index rose marginally to 6.28 per cent during the week ended June 17, 2000 thus arresting the fall witnessed in the previous two weeks. Inflation level rose by 0.07 percentage points during the week to 6.28 (provisional) from the level of 6.21 in the previous week mainly due to an increase in the non-food articles like sunflower and kardi seed.

Inflation was 1.99 per cent a year ago. According to the latest official WPI data, inflation rate based on the final index for the week ended April 22 was 6.31 per cent as compared to 6.10 per cent calculated on the basis of provisional index.

The final All Commodities' index for the week ended April 22, stood at 151.7 compared to 151.4 on the provisional index.

The index for All Commodities (Base 1993-94=100) during the week ended June 17, rose by 0.1 per cent to 152.4(P) As against 152.2(P) In the previous week.

Inflation rate has risen since February this year from 3 per cent to cross six per cent mainly on account of a rise in the prices of fuel, power, light and lubricants which mostly consist of items whose prices are administered.

Meanwhile, inflation based on consumer price index has fallen to 5.51 per cent in May this year from 5.54 in April. The rate during May 1999 was 7.71 per cent.

Fuel, Power, Light & Lubricants group, which accounts for 14.23 per cent of the total weight of WPI, rose by 27.53 per cent in the last one year. As against this, the other two major groups in WPI Primary articles and Manufactured Products rose by 4.8 per cent and 1.6 per cent respectively compared to the previous year.

The index for primary articles increased by 0.1 per cent to 164.5 (P) From 164.3 in the previous week.

Commodities whose prices fluctuated substantially during the reference week were sunflower (up 7 per cent), kardi seed and gram(up 3 per cent each), fodder (down 7 per cent), copra (down 3 per cent) and raw silk and castor seed (down 2 per cent each).

Food Articles index (P) Remained unchanged at its previous week's level of 174.2. However, the prices of gram (3 per cent) urad (2 per cent) and jowar, arhar, masure and fruits (1 per cent) were up.

Food articles which saw a fall in prices were tea (2 percent) and bajra, maize, ragi, vegetables and eggs (1 per cent each).

The +Non Food Articles+ index rose by 0.4 per cent to144.8(P) From 144.2(P) Due to higher prices of sunflower (7 per cent), Kardi seed (3 per cent) and groundnut seed and cotton seed (1 per cent each).

However, prices of fodder (7 per cent), copra (3 percent), raw silk and castor seed (2 per cent each) and raw jute (1 per cent) declined.

Index for Fuel, Power, Light & Lubricants remained unchanged at its previous week's level of 194.5 (P).

Manufactured Products' index rose by 0.1 per cent to138.8(P) From 138.6 on account of rise in the prices of food products, rubber and plastic products and machinery and machine tools.

The index for +Food Products+ increased by 0.3 per cent to 148.7 (P) From 148.3 for the previous week due to higher prices of rice bran oil (11 per cent), solvent extracted groundnut oil (9 per cent) sunflower oil (4 per cent), coconut oil (2 per cent) and gur and unrefined oil (1 per cent each).

However, the prices of gingelly oil (4 per cent), bran (2 per cent) and rape, mustard oil and soyabean oil (1 per cent) each declined.