New Delhi, June 08: A sharp to moderate price fall in non-food, food products and manufactured items triggered a 0.25 per cent dip in inflation to 5.65 per cent for the week ended May 24, although domestic fuel prices remained firm. The point-to-point wholesale price index (WPI) inflation fell from the previous week's level of 5.90 per cent and the index was a mere 1.43 per cent in the previous year period.
WPI fell by 0.1 per cent to 172.1 points in the latest reported week and the index was 162.9 a year ago.
The final WPI stood at 172.3 for the week ended March 29 as compared to the provisional level of 171.9, while the final inflation was 6.49 per cent as against the provisional mark of 6.24 per cent.
RBI governor Bimal Jalan had expressed confidence that inflation will fall gradually and would be in the range of 5-5.5 per cent during this fiscal.
The index for primary articles' group declined by 0.4 per cent to 180.6 owing to cheaper food and non-food articles and the index was 169.1 in the previous year period. Food articles' group index was down by 0.3 per cent to 180.9 due to lower prices for urad, fruits and vegetables and fish-marine (two per cent each) and ragi (one per cent), while there was two per cent price rise in condiments and spices and one per cent in gram.
The index for non-food articles' group fell by a sharp 0.8 per cent to 184.9 on account of cheaper niger seed (six per cent), castor seed (five per cent), kardi seed (four per cent), rape and mustard seed and copra (three per cent each), soyabean and raw rubber (two per cent each) and raw cotton and cotton seed (one per cent each).
Prices, however, rose for fodder (12 per cent), sunflower (two per cent) and raw jute (one per cent).
Fuel, power, light and lubricants' group index stood firm at the previous week's figure of 246.2 and the index was only 230.4 in the previous year period.
However, in the international markets, oil prices dipped during the week in concern with reports pouring in that Iraq might soon resume the crude exports. The index for manufactured products' group fell by 0.1 per cent to 152.6 owing to cheaper food products, machinery, non-metallic mineral products and transport equipment and the index was 145.7 a year ago.
Food products' group index was down by 0.3 per cent as prices fell for solvent extracted groundnut oil and rice bran oil (five per cent each), khandsari (four per cent) and sugar, coconut oil and bran (one per cent each), but prices rose for sooji-rawa and hydrogenated vansapati (one per cent each).
Non-metallic mineral products' group index was down by 0.5 per cent due to one per cent price dip in cement.
The index for machinery and machine tools' group fell by 0.1 per cent due to 13 per cent price dip in colour picture tubes and that of transport equipment and parts' group fell by 0.6 per cent on cheaper assembled car chasis (three per cent).
Textiles' group index rose by 0.2 per cent due to price rise in texturised yarn (six per cent) and cotton yarn – hanks (one per cent), but prices fell for viscose fliament yarn (six per cent), nylon filament yarn (four per cent) and hessian cloth (two per cent).
The index for chemicals and chemical products' group was up by 0.1 per cent due to costlier Ayurvedic medicine liquids (11 per cent) and synthetic resins (three per cent).
Basic metals, alloys and metal products' group index was up 0.3 per cent as prices rose for other iron steel (eight per cent), steel sheets, plates and strips (six per cent), pipes and tubes (three per cent) and bars and rounds (two per cent). Bureau Report