Inlfation still in negative zone

Government data showed on Thursday that the annual rate of inflation for all commodities stayed negative for the eighth straight week, but prices of food items continued to surge.

The annual Wholesale Price Index-based inflation declined 1.58 per cent in the week to July 25 after falling 1.54 per cent on an annual basis in the previous week. The year-on-year inflation rate was recorded at 12.53 per cent during the corresponding week of the previous year.

The official WPI for ‘All Commodities’ for the latest reported week rose by 0.04 per cent to 236.9 points from 236.8 points for the previous week. On a disaggregated basis, the primary articles group index rose 0.4 per cent as the index for ‘food articles’ group rose by 0.8 per cent due to higher inflation in items such as fish-marine (eight per cent), arhar (four per cent), urad ( two per cent) and fruits and vegetables, moong, mutton, wheat, masoor and condiments and spices (one per cent each).

However, the prices of eggs (two per cent) declined.

The index for ‘non-food articles’ group declined by 0.4 per cent due to lower inflation in raw wool (11 per cent), soyabean (five per cent) and niger seed (one per cent).

Raw silk (four per cent) and raw rubber (one per cent) moved up. The fuel and power index remained unchanged at its previous week’s level of 338.2 points.

The manufactured products group index declined by 0.1 per cent as the index for ‘food products’ group declined by 0.3 per cent due to lower inflation in oil cakes (three per cent) and imported edible oil (one per cent).

However, the prices of cotton seed oil, groundnut oil and sugar (one per cent each) moved up. The index for ‘textiles’ group rose by 0.1 per cent due to higher prices of cotton yarn-cones (four per cent) and cotton yarn-hanks (one per cent).

The prices of synthetic yarn and hessian cloth (four per cent each) and texturised yarn and polyester staple fibre (three per cent each) declined.

The index for ‘paper and paper products’ group declined by 0.2 per cent due to lower prices of newsprint and printing paper white (one per cent each).

The index for ‘basic metals alloys and metal products’ group rose marginally due to higher prices of zinc ingots (three per cent) and steel ingots, zinc and lead ingots (two per cent each).

For the week ended May 30, the final WPI for ‘All Commodities’ stood at 234.4 points compared to 232.6 points and annual rate of inflation based on final index, calculated on point to point basis, stood at 0.90 per cent as compared to the provisional estimate of 0.13 per cent points.