Inflation down; interest rates may fall as well
Updated: Mar 14, 2014 01:34:26pm
New Delhi, Mar 14 (KNN) Inflation based on wholesale price index (WPI) eased to a nine month low to 4.68 per cent for February 2014, declining from 7.28 per cent a year ago. The sharp fall in inflation raises prospects of cut in interest rates by the RBI when it comes out with the credit policy for the next fiscal on April-1.
The WPI inflation for January 2014 was 5.05 per cent.
“The annual rate of inflation, based on monthly WPI, stood at 4.68 per cent (provisional) for the month of February, 2014 (over February,2013) as compared to 5.05 per cent (provisional) for the previous month and 7.28 per cent during the corresponding month of the previous year,” official data said.
Meanwhile, on one side the inflation for manufactured products like transport, equipment and parts and machinery and machine tools declined by 0.2 per cent and 0.1 per cent, whereas on the other side, the products like basic metals, alloys and metal products and leather and leather products increased at a high rate of 0.4 per cent and 0.7 per cent respectively.
The inflation of primary articles declined by 0.1 per cent to 238.6 (provisional) from 238.9 (provisional) for the previous month.
“The index for `Food Articles` group declined by 0.3 per cent to 232.9 (provisional) from 233.6 (provisional) for the previous month due to lower price of poultry chicken (11 per cent), egg (5 per cent), gram and fruits and vegetables (3 per cent each), maize and barley (2 per cent each) and ragi, tea, bajra and arhar (1 per cent each). However, the price of fish-inland (6 per cent), jowar and moong (3 per cent each), masur and urad (2 per cent each) and milk, rice and mutton (1 per cent each) moved up,” official data said.
The index for `Non-Food Articles` group rose by 0.6 per cent to 217.4 (provisional) from 216.0 (provisional) for the previous month due to higher price of raw silk (10 per cent), fodder (5 per cent), copra (coconut) (4 per cent), soyabean (3 per cent), cotton seed (2 per cent) and groundnut seed, flowers and raw cotton (1 per cent each).
However, the price of castor seed (5 per cent), rape and mustard seed (4 per cent), niger seed and raw rubber (3 per cent each), sunflower, gingelly seed and safflower (2 per cent each) and guar seed, coir fibre and linseed (1 per cent each) declined.
The index for `Minerals` group declined by 0.2 per cent to 352.1 (provisional) from 352.9 (provisional) for the previous month due to lower price of dolomite (7 per cent) and crude petroleum and zinc concentrate (1 per cent each). However, the price of sillimanite (6 per cent), barytes and copper ore (5 per cent each), steatite (4 per cent) and chromite and iron ore (1 per cent each) moved up.
The index for fuel and power declined by 0.1 per cent to 212.6 (provisional) from 212.8 (provisional) for the previous month due to lower price of coking coal (7 per cent), aviation turbine fuel, kerosene and electricity (agricultural) (2 per cent each) and LPG (1 per cent). However, petrol and high speed diesel (1 per cent each) moved up. (KNN/SD)
The WPI inflation for January 2014 was 5.05 per cent.
“The annual rate of inflation, based on monthly WPI, stood at 4.68 per cent (provisional) for the month of February, 2014 (over February,2013) as compared to 5.05 per cent (provisional) for the previous month and 7.28 per cent during the corresponding month of the previous year,” official data said.
Meanwhile, on one side the inflation for manufactured products like transport, equipment and parts and machinery and machine tools declined by 0.2 per cent and 0.1 per cent, whereas on the other side, the products like basic metals, alloys and metal products and leather and leather products increased at a high rate of 0.4 per cent and 0.7 per cent respectively.
The inflation of primary articles declined by 0.1 per cent to 238.6 (provisional) from 238.9 (provisional) for the previous month.
“The index for `Food Articles` group declined by 0.3 per cent to 232.9 (provisional) from 233.6 (provisional) for the previous month due to lower price of poultry chicken (11 per cent), egg (5 per cent), gram and fruits and vegetables (3 per cent each), maize and barley (2 per cent each) and ragi, tea, bajra and arhar (1 per cent each). However, the price of fish-inland (6 per cent), jowar and moong (3 per cent each), masur and urad (2 per cent each) and milk, rice and mutton (1 per cent each) moved up,” official data said.
The index for `Non-Food Articles` group rose by 0.6 per cent to 217.4 (provisional) from 216.0 (provisional) for the previous month due to higher price of raw silk (10 per cent), fodder (5 per cent), copra (coconut) (4 per cent), soyabean (3 per cent), cotton seed (2 per cent) and groundnut seed, flowers and raw cotton (1 per cent each).
However, the price of castor seed (5 per cent), rape and mustard seed (4 per cent), niger seed and raw rubber (3 per cent each), sunflower, gingelly seed and safflower (2 per cent each) and guar seed, coir fibre and linseed (1 per cent each) declined.
The index for `Minerals` group declined by 0.2 per cent to 352.1 (provisional) from 352.9 (provisional) for the previous month due to lower price of dolomite (7 per cent) and crude petroleum and zinc concentrate (1 per cent each). However, the price of sillimanite (6 per cent), barytes and copper ore (5 per cent each), steatite (4 per cent) and chromite and iron ore (1 per cent each) moved up.
The index for fuel and power declined by 0.1 per cent to 212.6 (provisional) from 212.8 (provisional) for the previous month due to lower price of coking coal (7 per cent), aviation turbine fuel, kerosene and electricity (agricultural) (2 per cent each) and LPG (1 per cent). However, petrol and high speed diesel (1 per cent each) moved up. (KNN/SD)
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