New Delhi, June 22: Led by a sharp one per cent price dip in diesel, inflation plunged by another 0.39 per cent to 5.05 per cent for the week ended June seven, even as items of mass consumption like fruits and vegetables became costlier. Remaining above six per cent mark at the beginning of the fiscal, wholesale price index inflation dipped to just over five per cent, apparently bringing some relief to the public, but it was much lower at 2.18 per cent during the year-ago period, indicating that the cost of living has increased.
With international crude oil prices nosediving, institute of economic growth has forecast that point-to-point WPI inflation might settle below five per cent. Oil prices had eased during the week in review due to rise in US crude oil and gasoline inventories.
WPI was up by 0.1 per cent to 172.6 points mainly due to surge in the heaviest index of manufactured products and the index was 164.3 points in the year-ago period.
The final WPI stood at 172.9 for the week ended April 12 as compared to the provisional level of 172.7, while the final inflation was 6.60 per cent as against the provisional figure of 6.47 per cent.
Primary articles' group index was up by 0.2 per cent to 181 points due to costlier food articles. The index was 170.8 during the year-ago period.
The index for food articles' group increased by 0.4 per cent to 181.8 as prices rose for eggs (four per cent), jowar (three per cent), maize and mutton (two per cent), and fruits and vegetables and condiments and spices (one per cent each), even as there was one per cent price fall in moong. Bureau Report