The official Wholesale Price Index for all commodities for the week ended 23 May 2009 rose by 0.04% to 232.3 from 232.2 for the previous week. The annual rate of inflation, calculated on point-to-point basis, stood at 0.48% for the week ended 23 May 2009 as compared to 0.61% for the previous week and 8.90% during the corresponding week of the previous year.
The index for primary articles group rose by 0.2 % to 256.6 from 256.1 for the previous week on rising food articles index. The index for food articles group rose by 0.4 % to 252.3 from 251.4 for the previous week due to higher prices of tea (5%), jowar (2%) and eggs, maize, arhar, condiments & spices, fruits & vegetables and gram (1% each).
However index for non-food articles group declined by 0.1 % to 234.5 from 234.7 for the previous week due to lower prices of gingelly seed (1%).
Another two major index that is fuel; power light and Manufactured products remained unchanged at its previous week's level.
Among manufactured products the for textile, paper and paper product and non metallic mineral group registered an increased for the week ended 23 May 2009 compared to their previous week level.
The index for textiles group rose by 0.4% to 141.5 from 141.0 for the previous week due to higher prices of texturised yarn (9%) and nylon filament yarn, hessian cloth and hessian and sacking bags (1% each).
On the other hand index for leather and leather product group declined by 0.7 % to 166.2 from 167.4 for the previous week due to lower prices of footwear western type (1%).
The index for basic metals alloys and metal products group also declined marginally by 0.04 % to 255.6 from 255.7 for the previous week due to lower prices of zinc (5%) and zinc ingots and lead ingots (1% each).
In addition to this index for machinery and machine tools, transport equipment and parts group registered a decline for the week ended 23 May 2009 compared with a week ago.
The week on week fall in inflation level is unable to cheer the end users due to growing prices of food articles, which has increased the burden on daily consumption basket.
Also the double digit prime lending rate (PLRs) and near zero level inflation has resulted in higher real interest rate, which has restricted the end consumers to take ultimate benefit of lower inflation. Going forward the recent rise in oil prices may play a spoil sport.
However good monsoon expectations projection craft a glimmer of hope for easing primary article prices. Also Consumer Price Index (CPI) for all the groups (agriculture and rural labourers, urban non manual employees and for industrial workers as well) is showing signs of slowdown and is starting to fill the gap with the WPI rate.
The CPI for all groups has shown a single digit growth since last two months. The fall in consumer price index is adding more space for the rate cut which will assist the growth in long term.
The index for primary articles group rose by 0.2 % to 256.6 from 256.1 for the previous week on rising food articles index. The index for food articles group rose by 0.4 % to 252.3 from 251.4 for the previous week due to higher prices of tea (5%), jowar (2%) and eggs, maize, arhar, condiments & spices, fruits & vegetables and gram (1% each).
However index for non-food articles group declined by 0.1 % to 234.5 from 234.7 for the previous week due to lower prices of gingelly seed (1%).
Another two major index that is fuel; power light and Manufactured products remained unchanged at its previous week's level.
Among manufactured products the for textile, paper and paper product and non metallic mineral group registered an increased for the week ended 23 May 2009 compared to their previous week level.
The index for textiles group rose by 0.4% to 141.5 from 141.0 for the previous week due to higher prices of texturised yarn (9%) and nylon filament yarn, hessian cloth and hessian and sacking bags (1% each).
On the other hand index for leather and leather product group declined by 0.7 % to 166.2 from 167.4 for the previous week due to lower prices of footwear western type (1%).
The index for basic metals alloys and metal products group also declined marginally by 0.04 % to 255.6 from 255.7 for the previous week due to lower prices of zinc (5%) and zinc ingots and lead ingots (1% each).
In addition to this index for machinery and machine tools, transport equipment and parts group registered a decline for the week ended 23 May 2009 compared with a week ago.
The week on week fall in inflation level is unable to cheer the end users due to growing prices of food articles, which has increased the burden on daily consumption basket.
Also the double digit prime lending rate (PLRs) and near zero level inflation has resulted in higher real interest rate, which has restricted the end consumers to take ultimate benefit of lower inflation. Going forward the recent rise in oil prices may play a spoil sport.
However good monsoon expectations projection craft a glimmer of hope for easing primary article prices. Also Consumer Price Index (CPI) for all the groups (agriculture and rural labourers, urban non manual employees and for industrial workers as well) is showing signs of slowdown and is starting to fill the gap with the WPI rate.
The CPI for all groups has shown a single digit growth since last two months. The fall in consumer price index is adding more space for the rate cut which will assist the growth in long term.
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