The annual (year-on-year) rate of inflation in Indian economy increased to 5.6 per cent for the week ending January 10, 2009 compared to 5.2 per cent reported last week, showing a rise of 36 basis points, largely attributable to the impact of the oil and transport sector strikes.
A Finance Ministry communique points out that the increase in the inflation rate has temporarily reversed the 11-week declining trend which had set in since the last week of October 2008.
Year-on-year Inflation by Commodity groups
Commodity group-wise examination shows that inflation in the groups of primary articles and manufactured products have mirrored the rising trend seen in overall inflation in the current week.
i.In ‘primary articles’, the rate of inflation increased to 11.6 per cent, compared to 10.9 per cent reported last week. In the sub-group of ‘food articles’, inflation, which had declined to single digit in the last fortnight, rose to 11.6 per cent in the week ended January 10, 2009 as against 9.5 per cent in the previous week, largely due to higher inflation in vegetables and milk. In ‘non-food articles’, inflation continued to decline to 7.1 per cent compared to 9.6 per cent in the previous week, while inflation in ‘minerals’ rose to 41 per cent versus 40 per cent last week due to higher inflation in non-metallic minerals as limestone and felspar.
ii.In ‘fuel and power’, the rate of inflation remained steady at (-) 1.3.
iii.In ‘manufactured products’, the inflation rate increased to 5.9 per cent, compared to 5.6 per cent last week. While most sub-groups recorded stable or declining rates of inflation, the sub-groups of sugar, khandsari and gur, textiles and canned/processed fish showed increase.
For the combined food index (weight = 25.43 per cent), the year-on-year inflation in the week ended January 10, 2009 was higher at 9.5 per cent compared to 7.9 per cent last week. Inflation in cereals, pulses and fruits continue to register inflation rates ranging from 9 to 20 per cent.
Contribution of Commodity groups
Contribution of primary articles to the year-on-year inflation rate for the week ending January 10, 2009 show that this group accounted for 46.9 per cent, as against their share of 22 per cent to the WPI basket. While the contribution of the fuel and power group was (-) 5.1 per cent vis-à-vis share of 14 per cent, that of manufactured products was 58.5 per cent against a share of 64 per cent in the commodity basket.
Inflation measured by CPI
Inflation recorded by the Consumer Price Index for Agricultural Labour (CPI AL) and for Rural Labour (CPI RL) has remained steady at 11 per cent during September – December 2008.
Showing posts with label finance ministry. Show all posts
Showing posts with label finance ministry. Show all posts
Thursday, January 22, 2009
Friday, January 9, 2009
Inflation decines to 5.9%
Indian Annual rate of inflation, year-on-year, declined to 5.9 per cent for the week ending December 27, 2008 compared to 6.4 per cent reported in the previous week, showing a decline of 47 basis points, says a Finance Ministry communique.
Inflation has consistently been on the decline for three months now and stands slightly above the rate of 5.7 per cent in the week ended February 23, 2008.
Inflation by Commodity groups
Commodity group-wise examination of year-on-year inflation shows that inflation in all groups has recorded decline.
i.In ‘primary articles’, the rate of inflation decreased to 11.6 per cent, compared to 12.1 per cent reported last week. Within primary articles, inflation rate in all its three sub-groups of food and non-food articles and minerals have declined together for the first time in the current week. Inflation rate in food articles at about 10% represents a decline after 5 consecutive weeks of increase in the rate, while the inflation rate in minerals have gradually decelerated to 40 % in the current week from its peak rate of 54.5 % in October.
ii.In ‘fuel and power’, the rate of inflation has remained unchanged at (-) 0.7 per cent.
iii.In “manufactured products”, the inflation rate decreased to 6.2 per cent, compared to 6.8 per cent in the last week.
For the combined food index (weight = 25.43 per cent), the year-on-year inflation in the week ended December 27, 2008 was lower at 8.5 per cent compared to 8.8 per cent last week.
Contribution of Commodity groups
Contribution of primary articles to the year-on-year inflation rate for the week ending December 27, 2008 show that this group accounted for 44.2 per cent, as against their share of 22 per cent to the WPI basket.
Deseasonalised monthly WPI inflation
The deseasonalised overall WPI inflation show a continuing decline which began from July 2008. It has turned negative since September 2008 at (-) 3.2 per cent, (-) 9.6 per cent in October, (-) 18.1 per cent in November and (-) 13.5 per cent in December 2008. An identical pattern of decline from July 2008 and negative from September is manifest in the deseasonalised rate of inflation for manufactured products.
Inflation has consistently been on the decline for three months now and stands slightly above the rate of 5.7 per cent in the week ended February 23, 2008.
Inflation by Commodity groups
Commodity group-wise examination of year-on-year inflation shows that inflation in all groups has recorded decline.
i.In ‘primary articles’, the rate of inflation decreased to 11.6 per cent, compared to 12.1 per cent reported last week. Within primary articles, inflation rate in all its three sub-groups of food and non-food articles and minerals have declined together for the first time in the current week. Inflation rate in food articles at about 10% represents a decline after 5 consecutive weeks of increase in the rate, while the inflation rate in minerals have gradually decelerated to 40 % in the current week from its peak rate of 54.5 % in October.
ii.In ‘fuel and power’, the rate of inflation has remained unchanged at (-) 0.7 per cent.
iii.In “manufactured products”, the inflation rate decreased to 6.2 per cent, compared to 6.8 per cent in the last week.
For the combined food index (weight = 25.43 per cent), the year-on-year inflation in the week ended December 27, 2008 was lower at 8.5 per cent compared to 8.8 per cent last week.
Contribution of Commodity groups
Contribution of primary articles to the year-on-year inflation rate for the week ending December 27, 2008 show that this group accounted for 44.2 per cent, as against their share of 22 per cent to the WPI basket.
Deseasonalised monthly WPI inflation
The deseasonalised overall WPI inflation show a continuing decline which began from July 2008. It has turned negative since September 2008 at (-) 3.2 per cent, (-) 9.6 per cent in October, (-) 18.1 per cent in November and (-) 13.5 per cent in December 2008. An identical pattern of decline from July 2008 and negative from September is manifest in the deseasonalised rate of inflation for manufactured products.
Thursday, November 20, 2008
Inflation declines to 8.9%
Annual rate of inflation, year on year as conventionally measured, declined to 8.90 per cent for the week ending November 8, 2008 compared to a rate of 8.98 per cent reported in the previous week, the Finance Ministry has reported.
The Wholesale price index in the current week declined by 0.21 per cent, from 235.5 as on November 1, 2008 to 235.0 on November 8, 2008. For the second week in a row inflation continues to be in single digit, though the significant decline of 174 basis points witnessed last week has been moderated to 8 basis points. In the previous year, on November 10, 2007 inflation at 3.20 per cent was significantly lower.
In the ‘primary articles’ group, the annual point-to-point inflation increased to 11.66 per cent, as compared to 11.01 per cent reported last week. Out of a total of 98 articles, 14 articles have shown a decline in prices in the current week as compared to November 1, 2008. These included among others, jowar, maize, ragi, tea, brinjal, black pepper, linseed, coconut fresh, papaya, rape and mustard seed, raw cotton, banana, fire clay and gypsum. A total of 55 articles have shown no increase in prices.
In the commodity group ‘fuel and power’, the rate of inflation declined further to 8.21 per cent in the current week compared to an inflation of 9.22 per cent reported in the previous week. Prices of 4 commodities declined and, for other 14 commodities, it remained unchanged. Prices of bitumen, continues to increase by 1.24 per cent in the current week.
In the case of ‘manufactured products’, rate of inflation in the current week declined marginally to 8.02 per cent, as compared to 8.06 per cent in previous week. Out of 318 commodities, a large number, 287 in all, have shown no increase in prices over the last week. For 21 commodities, there has been a decline in prices. These commodities included among others, sugar, gur, bar and rods, imported edible oils, deoiled cake, rape and mustered cake, groundnut cake and oil, rice bran oil, synthetic yarn, texturised yarn, zinc ingots, bright bars, P.V.C. resins and benzene. Only 9 products, particularly fluorescent tubes, cotton yarn and cotton cloth, bicycles, GLS lamps and mustered oil witnessed an increase in prices.
Inflation of 30 essential commodities declined marginally to 7.60 per cent as of the week ending November 8, 2008 from 7.74 per cent reported in the earlier week. There was a however, an increase in the prices of primary essential commodities including pulses such as urad, moog, gram, arhar, masoor, and cereals like wheat, rice, and bajara . There was also an increase in the prices of onions. The prices of other essential commodities moderated or declined over previous week.
The monthly deseasonalised inflation rate has been negative during September and October, suggesting a continuing moderation in WPI inflation in the coming months. For the month of October 2008, the deseasonalised inflation for primary food showed some increase, though there was significant decline in inflation rate of manufactured food. The overall monthly deseasonalised inflation in manufactured products shows a continuing decline since September 2008.
The Wholesale price index in the current week declined by 0.21 per cent, from 235.5 as on November 1, 2008 to 235.0 on November 8, 2008. For the second week in a row inflation continues to be in single digit, though the significant decline of 174 basis points witnessed last week has been moderated to 8 basis points. In the previous year, on November 10, 2007 inflation at 3.20 per cent was significantly lower.
In the ‘primary articles’ group, the annual point-to-point inflation increased to 11.66 per cent, as compared to 11.01 per cent reported last week. Out of a total of 98 articles, 14 articles have shown a decline in prices in the current week as compared to November 1, 2008. These included among others, jowar, maize, ragi, tea, brinjal, black pepper, linseed, coconut fresh, papaya, rape and mustard seed, raw cotton, banana, fire clay and gypsum. A total of 55 articles have shown no increase in prices.
In the commodity group ‘fuel and power’, the rate of inflation declined further to 8.21 per cent in the current week compared to an inflation of 9.22 per cent reported in the previous week. Prices of 4 commodities declined and, for other 14 commodities, it remained unchanged. Prices of bitumen, continues to increase by 1.24 per cent in the current week.
In the case of ‘manufactured products’, rate of inflation in the current week declined marginally to 8.02 per cent, as compared to 8.06 per cent in previous week. Out of 318 commodities, a large number, 287 in all, have shown no increase in prices over the last week. For 21 commodities, there has been a decline in prices. These commodities included among others, sugar, gur, bar and rods, imported edible oils, deoiled cake, rape and mustered cake, groundnut cake and oil, rice bran oil, synthetic yarn, texturised yarn, zinc ingots, bright bars, P.V.C. resins and benzene. Only 9 products, particularly fluorescent tubes, cotton yarn and cotton cloth, bicycles, GLS lamps and mustered oil witnessed an increase in prices.
Inflation of 30 essential commodities declined marginally to 7.60 per cent as of the week ending November 8, 2008 from 7.74 per cent reported in the earlier week. There was a however, an increase in the prices of primary essential commodities including pulses such as urad, moog, gram, arhar, masoor, and cereals like wheat, rice, and bajara . There was also an increase in the prices of onions. The prices of other essential commodities moderated or declined over previous week.
The monthly deseasonalised inflation rate has been negative during September and October, suggesting a continuing moderation in WPI inflation in the coming months. For the month of October 2008, the deseasonalised inflation for primary food showed some increase, though there was significant decline in inflation rate of manufactured food. The overall monthly deseasonalised inflation in manufactured products shows a continuing decline since September 2008.
Subscribe to:
Posts (Atom)
