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Inflation rate rises, nears 4 per cent

Inching its way towards the four per cent mark, the inflation rate registered a massive rise in the current fiscal year of 0.61 per cent to touch 3.96 per cent on November 29 while maintaining the single digits realm for the successive 140th week.

It has been witnessing a declining trend for four weeks except on November 15 when it went up by 0.16 per cent to 3.36 per cent from 3.20 per cent in the previous week.

The latest rise in the inflation rate was on account of substantial hike in prices of tea, barley, logs, timber, copra, western footwear and sulphuric acid. But the inflation rate in the corresponding week last year (November 30) stood at 6.67 per cent.

Analysts had predicted a hike in the prices of petroleum products and rail freight might boost the inflation rate to some extent. But the fall in the inflation rate has set aside these fears.

The officials had predicted the impact on the inflation rate due to petroleum products price rise would be around 0.74 per cent.

But to their surprise, the inflation rate went up marginally by 0.39 to 4.20 per cent on September 6 from 3.81 per cent.

The impact due to petroleum products price hike did not last long enough to make any ripples in the inflation rates it dipped by 0.16 per cent to 4.04 per cent on September 13.

Similarly, the rail freight rise did not register any impact though the officials had expected 0.31 per cent increase in the inflation rate.

But to the contrary, the drop in the inflation rate surprised many when it dipped by 0.16 per cent to 3.97 per cent on October 18 from 4.13 per cent.

After recording a 11-year-low of 3.75 per cent twice in six weeks on August 16 and September 20, the inflation rate saw a minuscule rise of 0.03 per cent to 3.78 per cent on September 27.

The inflation rate, based on the consumer price index for industrial workers (base 1982) was above the five per cent mark at 5.49 per cent in October whereas the average inflation rate based on the wholesale price index for all commodities (base 1981-82) was 3.92 per cent.

The official wholesale price index for all commodities (1981-82) registered a rise for the third consecutive week to 331 during the week ended November 29 from 329.9.

The 0.3 per cent increase in the index was mainly due to hefty rise in the index of leather and leather products, fuel, power, light and lubricants and food articles.

The final wholesale price index for all commodities (base 1981-82) stood at 330.7 during the week ended October 4 as against the provisional index of 330.2.

The inflation rate based on the final index worked out to 4.29 per cent in contrast to 4.13 per cent based on provisional index.

With tea prices shooting up drastically by six per cent, barley up by three per cent, wheat, maize, pulses, fruits and vegetables up by one per cent each, the index for food articles, under the primary articles group, rose by 0.5 per cent to 386.8 from 184.8.

However, the prices of condiments and spices fell by two per cent each and price of rice declined by one per cent.

As fodder became cheaper by four per cent, raw silk, groundnut and raw rubber down by two per cent each, raw hides and raw skins prices came down by one per cent each.

The index for non-food articles declined by 0.2 per cent to 345.1 from 345.8. A whopping seven per cent hike in electricity tariffs pushed up the index for fuel, power light and lubricants sharply by 2.1 per cent to 377.4 from 369.6.

EARLIER REPORT:
Housewives complain of higher prices

UNI