Inflation falls to 20-week low of 2.37 per cent

The lowest rate of inflation previously recorded was 1.95 per cent for the week ended October 2, 1999.

Inflation rate, however, was above five per cent at 5.12 per cent during the corresponding week last year. After touching a 32-week high of 3.31 per cent for the week ended January 22, inflation rate has been steadily falling due to decline in prices of various primary articles.

The wholesale price index for `all commodities’ (Base:1981-82=100) for the week ended February 12 also registered a fall of 0.2 per cent to 363.4 (provisional) as against 364.1 (provisional) a week ago.

The declining trend in inflation rate is now likely to change following the five per cent increase in freight charges announced in the railway budget for 2000-01, that is expected to push up prices of most manufactured goods.

The final wholesale price index for `all commodities’ (Base: 1981-82=100) for the week ended December 18, 1999 stood marginally lower at 365.1 as against the provisional figure of 365.7.

The final rate of inflation for the same week was also lower at 3.13 per cent compared to 3.13 per cent recorded on the provisional index.

The rate of inflation based on consumer price index for industrial workers (CPI-IW) had risen marginally in December 1999 to 0.5 per cent from zero per cent in November. The rate of inflation was 15.3 per cent during the previous year.

The CPI-IW registered a fall of seven points during the month of December 1999, to stand at 431. The primary articles’ index recorded a decline of 0.5 per cent for the third week in a row, while the index for fuel, power, light and lubricants remained static at the previous week’s level.

Index for manufactured product, the third major group in the WPI, also registered a fall of 0.1 per cent for the second successive week. Prices of commodities which altered significantly during the week under review included raw hides (down 14 per cent), pistons (down 10 per cent), tea (down 7 per cent), copra (down 6 per cent), kardi seed and soyabean (down 5 per cent each), eggs and raw wool (down 4 per cent each), ayurvedic medicines (up 6 per cent) and synthetic rubber (up 4 per cent).

Sharp decline in indices of food articles and non-food articles led to a 0.5 per cent decline in the index for primary articles to 383.1 (provisional) from 384.9 (P) in the previous week.

The final rate of inflation for the same week was also lower at 2.96 per cent compared to 3.13 per cent recorded on the provisional index. The rate of inflation based on consumer price index for industrial workers (CPI-IW) had risen marginally in December 1999 to 0.5 per cent from zero per cent in November. The rate of inflation was 15.3 per cent during the previous year.

The CPI-IW registered a fall of seven points during the month of December 1999, to stand at 431.The primary articles’ index recorded a decline of 0.5 percent for the third week in a row, while the index for fuel, power, light & lubricants remained static at the previous week’s level.

Index for manufactured product, the third major group in the WPI, also registered a fall of 0.1 per cent for the secon successive week.

Prices of commodities which altered significantly duringthe week under review included raw hides (down 14 per cent), pistons (down 10 per cent), tea (down 7 per cent), copra (down 6 per cent), kardi see and soyabean (down 5 per cent each), eggs and raw wool (down 4 per cent each), ayurvedic medicines (up 6 per cent) and synthetic rubber (up 4 per cent).