|
Inflation has reversed the trend of three weeks and declined to 0.48% for the week ended May 2 however prices of essential food items such as cereals, pulses and vegetables continues to remain high. It has been now for the ninth week in a row, inflation has continued to remain below the mark of one percent, inducing RBI and other banks to cut down their rates of interest.
Year-on-year, the prices of cereals rose more than 11%, pulses 14.8%, and fruit and vegetables 5.5%. At the same time, the prices of milk have gone up nearly 6.5% over last year, while spices cost more by 8.5%. As far as the manufacturing products are concerned, processed fish prices have surged by more than 42% over last year and sugar, khandsari and gur went up about 26%.
Based on the wholesale price index, inflation has dipped from 0.70% in the previous week to 0.22 percentage points. Inflation stood at 8.73% during the same week a year ago. During the week, the prices of ragi were up by as much as 17%, tea by 2%, pulses by 0.4% and vegetables by 3%.
Among fuel, power, light and lubricants, the index rose by 0.2% even though the prices of bitumen and jet fuel have dropped by 1%. At the same time, naphtha was dearer by 3% and diesel 1%. The index for manufactured products has increased by 0.4% and this is primarily due to chemical and manufactured food items.
Among manufactured food items, prices of edible oil were up 4%, while sugar turned dearer by 3%. Pesticides were dearer by 33%, benzene 27% and PTA by 11%.
Inflation for the week ended March 3 was revised upwards to 0.89% from 0.44% as estimated provisionally. The Times of India
May 15, 2009
|
