Inflation slips to 5.87%

Inflation fell marginally to 5.87 per cent during the week ended June 19, after rising steadily for five consecutive weeks. The rate fell from 5.89 per cent, registered in the previous week, despite an increase in the prices of cooking gas, petrol and diesel.

The general price level at 5.21 per cent was 66 basis points lower during the same period last year.

The Wholesale Price Index for the latest reported week rose to 184 points even as the index of heavy-weighted manufactured products stood firm at the previous week's level, while that of food products went up. The index was at 173.8 points in the year-ago period.

The government revised upwards point-to-point inflation to 4.32 per cent for the week ended April 24, compared with the provisional figure of 4.26 per cent.

The final WPI stood corrected at 181.2 points during the last week of April, against the provisional level of 181.1 points. The index of primary articles' group was up marginally 0.1 per cent to 187.3 points because of dearer food articles.

The index was 184.8 points in the previous year.

Food articles' group index rose 0.2 per cent to 186.8 points because of higher prices for eggs (six per cent) beef and buffalo meat (three per cent), fish-inland and condiments and spices (two per cent each) and tea, urad and arhar (one per cent each). There was a two per cent fall in the prices of maize and one per cent in jowar.

The index of non-food articles' group dipped 0.3 per cent to 191.6 points due to cheaper soyabean (three per cent), groundnut seed (two per cent) and raw cotton, raw skin, copra, gingelly seed and kardi seed (one per cent each).

There was an increase in the prices of raw rubber (13 per cent), fodder (six per cent), raw jute (three per cent) and castor seed (one per cent).

The index for fuel, power, light and lubricants' group shot up nearly two per cent to 270.2 points because of an increase in the prices of LPG, petrol and diesel, which were rather subdued for the last six months because of political compulsions.

The index was 246.1 points in the year-ago period.

However, there was a four per cent fall in the price of naphtha, which is one of the main raw materials for power generation and fertiliser companies.

Although the manufactured products' group index was firm at 163.7 points, prices declined for food products and machinery, even as beverages tobacco, rubber and plastic, chemicals and transport equipment became costlier. The index was 153.8 points in the previous year.