It was 8.29 per cent the week before. However, it was 3.62 per cent during the corresponding week last year. The recent drop in the inflation rate was mainly due to slump in prices of primary articles such as fish (marine), barley, urad, sunflower and fodder.

Last week, it had touched 116-week high of 8.29 which was the highest since November seven, 1998, when it stood at 8.61 per cent.

A leading economist of institute of economic growth had predicted that inflation rate based on WPI would be between nine and ten per cent in coming months. However, he said the stability in global oil prices might lessen the pressure on the inflation rate.

Due to rise in the index of manufactured products, the wholesale price index of all commodities (base 1993-94) registered a 0.1 per cent increase to 158.1 on January 27 from 158 in the previous week and it was 146.1 during the same period last year.

The index for primary articles fell by 0.2 per cent to 161.4 from 161.7 while the index for manufactured products rose 0.2 per cent to 143.6 from 143.3. The index for fuel, power, light and lubricants remained unchanged at its previous week's level of 217.9.

The final wholesale price index for all commodities (base 1993-94) stood at 158.6 on December 2 as against the provisional index of 157.3. The inflation rate based final index worked out to 8.33 per cent as against 7.45 per cent based provisional index.

With fish (marine) prices declining sharply by eight per cent, barley and urad by three per cent each, jowar, condiments and spices by two per cent each, gram, arhar and masur by one per cent each, the index for food articles, under the primary articles group, dropped by 0.2 to 168.3 from 168.6. But the prices of pork shot up by five per cent, moong and fruits, vegetables by one per cent each. The index for non-food articles fell by 0.3 per cent to 147.8 from 148.2 because sunflower and fodder became cheaper by six per cent each, soyabean by two per cent, raw jute and kardi seed by one per cet each. But the prices of gingili seed rose sharply by nine per cent and raw skins by two per cent.

With khandsari and solvent extracted groundnut oil becoming cheaper by two per cent each, gur and rice bran oil by one per cent each, the index for food products, under the manufactured products group, slid by 0.1 per cent to 143.6 from 143.8. But the prices of atta, cakes, sweet roles, gingelly oil and coconut oil by one per cent each prices moved up by one per cent each. The index for textiles came down by 0.6 per cent to 121.6 from 122.3 due to seven per cent fall in the prices of polyester staple fibre, three per cent decline in prices of texturised yarn and tyre-cord fabrics and one per cent decrease in prices of cotton yarn cones and woollen yarn. But the prices of synthetic yarn became dearer by one per cent.

(UNI)