India's headline annual inflation rate for all commodities, based on the new series of WPI (Wholesale Price Index), for the month of September rose to its highest level since November to 7.81 percent from the preceding month's 7.55 percent, due to higher fuel prices, prompting the Reserve Bank of India (RBI) to cut interest rate this month in its policy review.
RBI has kept its key policy repo rate unchanged at eight percent since April, citing the risks from stubbornly high inflation.
The rate of inflation was, however, lower than the 10.00 percent reported in the corresponding month last year, data say.
As per the official data released on Monday, inflation in food items stood at 7.86 percent in September, compared to 7.55 percent in August.
Potato turned expensive by 52.20 percent and pulses by 29.28 percent, while wheat and cereals were up by 18.63 percent and 14.18 percent respectively. However, the rates of onion and vegetables fell by 24.88 percent and 6.78 percent respectively.
Build-up inflation during the current fiscal so far rose to 4.60 percent from 4.48 percent in the corresponding period last year, the data showed.
Going by provisional figures, the WPI for 'all commodities' for March rose by 1.1 percent to 168.4 from its previous month's level of 166.6.
Final annual rate of inflation for July (based on the 2004-05 base year) revised upward to 7.52 percent from the earlier provisional figure of 6.87 percent.
Index for the 'Primary Articles' group increased by 0.55 percent from the preceding month of August.
The groups and items for which the index showed variations during the month were:
Index for 'Food Articles' group increased by 0.61 percent from the previous month, due to higher prices of coffee, ragi, fish-marine, wheat, egg and fish-inland, chicken, maize, rice, urad, masur, tea and milk. However, the prices of fruits and vegetables, barley and jowar fell.
Index under the 'Non-Food Articles' category fell by 2.13 percent from August, on lower prices of gaurseed, castorseed, soyabean, raw cotton and raw silk, while those of logs and timber, raw rubber, cottonseed, gingellyseed, raw jute and sunflower moved up.
Index under the 'Minerals' category grew by 4.92 percent, because of the higher prices of barytes, rude petroleum, zinc concentrate, phosphorite, manganese ore and copper ore, whereas those of sillimanite and magnesite, and steatite declined.
Index for fuel, power, light and lubricants grew by 4.03 percent from the previous month due to higher prices of aviation turbine fuel, light diesel oil, naphtha, high speed diesel, furnace oil and kerosene. However, the prices of bitumen declined.
Manufactured Products such as gram power, sugar confectionary, mixed spices, jute sacking bag, plywood, newspaper, paper carton/boxes, leather shoe lining, plastic products, di ammonium phosphate, lime, bricks and tiles, silver, gold ornaments, batteries, textile machinery, silencer and damper, geared motors and some other products pushed up the index for 'Manufactured Products' to 0.54 percent.
However, prices of processed prawn, tea dust, rice bran oil, thermocol, turpentine oil, marbles, white cement, steel rods, ferro chrome, steel piles and tubes, fans, material handling equipment and ball/roller bearing declined.
by RTT Staff Writer
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