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Monday, February 15, 2010

Inflation at 8.56% in January 2010


Fuel and power index recorded 1.8% growth

The WPI inflation recorded 8.56% growth in January 2010 compared with 7.31% in December 2009. The RBI has projected higher WPI inflation growth on account of lower supply of the essential commodities however expected ease in inflationary pressure in July 2010.

The lower supply of the essential commodities boosts WPI inflation.
The index of primary articles rose by 0.2 % to 284.7 from 284.1 last month. The index for 'Food Articles' group declined by 0.7 %to 286.4 from 288.4 for the previous month due to lower prices of fruits & vegetables and tea (9% each) and gram and maize (1% each). However, the prices of masur (9%), fish-marine (6%), arhar (5%), wheat (4%), moong, barley and eggs (3% each), bajra and coffee (2% each) and milk, ragi, jowar, rice, pork and condiments & spices (1% each) moved up.

The index for 'Non-Food Articles' group rose by 2.7 % to 256.3 from 249.5 for the previous month due to higher prices of soyabean (16%), mesta (15%), niger seed (8%), tobacco and sunflower (7% each), gingelly seed (6%), raw rubber and raw silk (3% each), fodder and sugarcane (2% each) and raw cotton, rape & mustard seed, cotton seed and groundnut seed (1% each). However, the prices of skins (raw) and castor seed (4% each) declined.

The index for fuel and power rose by 1.8 % to 351.5 from 345.2 for the previous month due to higher prices of naphtha (21%), furnace oil (6%), bitumen, non-coking coal and light diesel oil (3% each) and coking coal (2%). However, the prices of aviation turbine fuel (4 %) declined.

The index for manufactured product rose by 0.7 % to 213.0 from 211.5 for the previous month. The index for 'Food Products' group rose by 1.6 %to 257.4 from 253.3 for the previous month due to higher prices of sugar (7%), gur and khandsari (4 % each), gingelly oil and salt (3% each), atta, coconut oil and ghee (2% each) and butter, imported edible oil, cotton seed oil and rape & mustard oil (1% each). However, the prices of soyabean oil and oil cakes (4% each), skimmed milk powder (2%) and rice bran oil and bran (all kinds) (1% each) declined.

The index for 'Chemicals & Chemical Products' group rose by 0.5 % to 230.5 from 229.3 for the previous month due to higher prices of benzene and liquid injectables other than vitamins (10% each),ointments (9%), p.v.c. resins (5%),varnishes and acid (all kinds) (4% each), synthetic rubber, tablets except vitamin & penicillin, purified terephthalic acid (pta) and titanium dioxide (2% each), vitamin tablets (1%). However, the prices of epoxy resins (8 %), liquid chlorine and caustic soda (sodium hydroxide) (4% each), carbon black and soda ash (sodium carbonate) (3% each), calcium ammonium nitrate n-content (2%) and bopp film and paints (1 % each) declined.

The index for 'Basic Metals Alloys & Metal Products' group rose by 0.6 % to 259.7 from 258.2 for the previous month due to higher prices of steel ingots (13%), other iron steel (7%), ms bars & rounds, basic pig iron and foundry pig iron (5% each), zinc ingots and lead ingots (3% each), zinc (2%) and pipes & tubes, aluminium ingots and steel sheets, plates & strips (1 % each).

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