Inflation slips to 4.14%

New Delhi, Nov 18 | Updated: Nov 19 2005, 05:30am hrs
The annual rate of inflation on point-to-point basis slipped to 4.14% for the week ended November 5 from 4.75% in the previous week. The rate of inflation during the same period last year was 7.93%.

Apart from the base year effect, the softening of inflation rate can also be attributed to the strategy of the Reserve Bank of India (RBI) to suck excess liquidity by increasing the repo and reverse repo rate by 0.25% each.

The wholesale price index (WPI) for the week ended November 5, went up by 0.1% to 198.5 points from 190.6 points a year ago. The primary articles group index was up by 0.2% to 199.7 points as prices rose for both food and non-food items. The index was 192.4 points during the same period last year.

Food articles group index rose by 0.2% to 201.9 points due to higher prices of urad (3%), moong (2%) and wheat, condiments and spices, eggs and gram (1% each), but maize became cheaper by 2%.

The index for non-food articles group index went up by 0.2% to 182.6 points due to higher prices of groundnut seed, mesta, soyabean and gingelly seed (1% each). One per cent increase in bitumen prices pushed up the fuel, power, light and lubricants group index marginally to 312.5 points. The index was 291.7 points a year ago.Manufactured products group index was up by 0.1% to 172.7 points due to costlier food products, chemicals and machinery.