Inflation up marginally to 7.87 per cent

During the latest reported week, the WPI rose by 0.1 per cent to 189.2 points even as prices of most of the primary articles fell, while that of fuels remained unchanged. The index of mass consumption primary articles’ group, which carries a weight of 22.02 per cent in the WPI basket, was down 0.3 per cent to 193.9 points mainly due to fall in the prices of food products and minerals, even as non-food items became costlier. Food articles’ group index declined by 0.3 per cent to 190.3 points due to lower prices of fish-inland and maize and urad, poultry chicken, moong and fruits and vegetables. However, prices soared in the case of arhar and eggs, wheat and bajra.

The index for non-food articles’ group rose by 0.1 per cent to 196.7 points due to higher prices of coir fibre, fodder, castor seed and raw tobacco. After a long gap, minerals’ group index plummeted by around 3 per cent.

Gilts hold firm

MUMBAI: Traders did not allow prices of gilts to slip today despite the inflation nudging up to 7.87 per cent in the week ended September 11 as against 7.81 per cent in the previous week ended September 4. Gilt prices held their ground as any depreciation at this juncture is going to affect quarter-end valuation of investment portfolio of banks, primary dealers and mutual funds.