Inflation of mfg items declines; but prices of common goods remain high
Updated: Jul 15, 2013 03:21:43pm
New Delhi, Jul 15 (KNN) The Wholesale Price Index (WPI) inflation for the month of June was at 4.86 per cent, better than what was expected but prices of essential commodities consumed by common man and wage workers remain excessively high.
Core inflation came in at 2 per cent while the inflation figures during the corresponding month of the previous financial year stood at 7.58 per cent.
Prices of onion, for instance, have gone up by almost 114 per cent in June from 97.40 per cent during the previous month.
Vegetables prices too went up by 16.47 per cent during the month, from 4.85 per cent in May. It was (—) 9.05 per cent in April.
As per official data released today, WPI inflation in the food articles category rose to 9.74 per cent, driven mainly by price rise in onion, cereals and rice.
Most of these items are consumed by the common man.
Also, from the point of small businesses, inflation of essential commodities is still a cause for concern since it will continue to exert wage pressure on workers.
Inflation in the manufactured items category, however, declined to 2.75 per cent in June from 3.11 per cent in May. The manufactured products form 64.97 per cent of the EPI basket.
The inflation in most of the products used by the small manufacturers such as raw material or as final products has also risen.
The inflation index for textiles, wood and wood products, paper and paper products, leather and leather products rose pertaining to the higher price of the raw materials.
Similarly, the inflation for many such products such as rubber and plastic products, machinery and machine tools, transport, equipment and parts also rose whereas for chemicals and chemical products' group, it declined by 0.1 per cent.
Inflation in fuel and power items too came down to 7.12 per cent during the period under review, as against 7.32 per cent during the previous month.
The inflation data is also likely to impact the first—quarter policy, scheduled for July 30 by the Reserve Bank while formulating it.
There have been demands for lowering interest rate in the backdrop of declining inflation. (KNN)
Core inflation came in at 2 per cent while the inflation figures during the corresponding month of the previous financial year stood at 7.58 per cent.
Prices of onion, for instance, have gone up by almost 114 per cent in June from 97.40 per cent during the previous month.
Vegetables prices too went up by 16.47 per cent during the month, from 4.85 per cent in May. It was (—) 9.05 per cent in April.
As per official data released today, WPI inflation in the food articles category rose to 9.74 per cent, driven mainly by price rise in onion, cereals and rice.
Most of these items are consumed by the common man.
Also, from the point of small businesses, inflation of essential commodities is still a cause for concern since it will continue to exert wage pressure on workers.
Inflation in the manufactured items category, however, declined to 2.75 per cent in June from 3.11 per cent in May. The manufactured products form 64.97 per cent of the EPI basket.
The inflation in most of the products used by the small manufacturers such as raw material or as final products has also risen.
The inflation index for textiles, wood and wood products, paper and paper products, leather and leather products rose pertaining to the higher price of the raw materials.
Similarly, the inflation for many such products such as rubber and plastic products, machinery and machine tools, transport, equipment and parts also rose whereas for chemicals and chemical products' group, it declined by 0.1 per cent.
Inflation in fuel and power items too came down to 7.12 per cent during the period under review, as against 7.32 per cent during the previous month.
The inflation data is also likely to impact the first—quarter policy, scheduled for July 30 by the Reserve Bank while formulating it.
There have been demands for lowering interest rate in the backdrop of declining inflation. (KNN)
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