NEW DELHI, NOV 14: Putting a brake to a brief four-week rising spell, the inflation rate witnessed a minuscule 0.17 per cent drop at 2.78 per cent on October 30, despite the substantial increase in the indices of basic metals, alloys metals products and machinery and machine tools. It was 2.95 per cent the week before.Contrary to expectations, the inflation rate had come down despite the predictions that it might go up due to diesel price hike and country-wide truck strike. However, it was hovering much above the 8 per cent mark at 8.64 per cent during the corresponding week last year. The recent low rate of inflation was on account of higher base in the corresponding period last year.The decline in the inflation was despite the considerable increase in the prices of vegetable, poultry chicken, raw rubber, coir fibre, copra, coconut oil, pulp and foundries for casting, forgings and structurals. But there was a slight decline in the prices of ragi, gur and bricks during the week under review. Theinflation rate never crossed the double digit mark for more than four years since April 5, 1995.In contrast, the inflation rate based on consumer price index for industrial workers saw a drastic decline of 1.01 per cent to touch 2.14 per cent in September from 3.15 per cent in the previous month. It had been witnessing a downward trend for the sixth successive month since April. It had maintained single digit reign for the ninth month in succession since January this year.A considerable climb in the indices of food products, paper and paper products, basic metals, alloys and metal products and machinery and machine tools was the main factor for the official wholesale price index for all commodities (base 1981-82) go up for fifth successive week by 0.1 per cent to 369.8 on October 30 from 369.4 in the previous week.The final wholesale price index for all commodities (base 1981-82) stood at 365.9 on September 4 as against the provisional index of 363.3. The inflation rate based on final index workedout to 2.67 per cent in contrast to 1.94 per cent based on provisional index.To compound to the common man's problems, the recent country-wide truck strike will have its impact since it will boost up the prices of essential commodities.The government said that the diesel price hike was necessitated due to the increase in international prices of petroleum products. The Institute of Economic Growth (IEG) had predicted that the inflation rate would see a slight rise in a couple of months, but it ruled out any chance of sharp jump in the inflation rate. The diesel price hike will have cascading effect which would lead to cost-push inflation rate.IEG puts 3.26 per cent as the wholesale price index inflation for November. During the week, with vegetables and poultry chicken prices going up by two per cent each, gram, eggs, condiments and spices prices that up by one per cent each, the index for food articles, under the primary articles group, moved up by 0.1 per cent to 478.3 from 477.9. But ragi pricesdeclined by two per cent, bajra, maize, barley, milk and fish prices dipped by one per cent each.
