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Thursday, October 29, 2009

RBI revised WPI projection

WPI is at 1.51% 


The index of headline inflation has remain unchanged at 242.2 level during the week ended 17 Ocotber2009 however the annual rate of inflation stood at 1.51% for the week ended 17 October 2009 compared with 1.21% last week and 10.82% during 18 October 2008.

The index of primary articles declined at 0.1% % to 273.3 from 273.5 for the previous week. The index for 'Food Articles' group declined by 0.1 % to 278.4 from 278.6 for the previous week due to lower prices of fish-marine (6%). However, the prices of tea, mutton, maize, arhar, condiments & spices and moong (1% each) moved up.

On other hand, the index of fuel and power declined by 0.1% to 344.9 from 345.4 for the previous week due to lower prices of aviation turbine fuel (3%), furnace oil (2%) and light diesel oil (1%). However, the prices of bitumen (2%) moved up.

One of the major index in WPI, that is manufactured product rose by 0.1 % to 208.6 from 208.3 for the previous week.

The index for 'Food Products' group rose by 0.4 % to 240.2 from 239.2 for the previous week due to higher prices of imported edible oil and gur (4% each), rice bran oil (3%) and oil cakes (2%). However, the prices of butter and groundnut oil (2% each) and gingelly oil and ghee (1% each) declined.

The index for 'Textiles' group declined by 0.1 % to 144.6 from 144.7 for the previous week due to lower prices of cotton yarn-cones (1%). However, the prices of hessian cloth (2%) moved up.

The index for 'Chemicals & Chemical Products' group rose by 0.2 % to 229.8 from 229.4 (Provisional) for the previous week due to higher prices of calcium ammonium nitrate n-content (8%), liquid chlorine (2%) and caustic soda (sodium hydroxide) (1%). However, the prices of p.v.c. resins (6%) declined.

In second quarter review the apex bank of India has revised its inflation projection to 6.5% for March 2010 from 5% set earlier. Global commodity prices have rebounded ahead of global recovery. The upside risk of deficient monsoon rainfall projected in the First Quarter Review of July 2009 has since materialised and prices of primary food items and manufactured food products have risen due to short supply. In short , inflation specially prices of food articles are set to rise.
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