Inflation nearing the positive terrain

Inflation, as measured by the wholesale price index (WPI), fell the least in the third week of August. Food, fuel and electricity prices shot up, even as a higher base kept a lid on the overall rise in wholesale prices. The annual, point-to-point inflation dropped 0.21% in the week ended Aug. 22 from a year earlier, after retreating 0.95% in the previous week, the Commerce Ministry said in New Delhi today. That compared with the median forecast of a 0.85% fall. Inflation was at 12.76% during the corresponding week of the previous year. The WPI for 'All Commodities' for the week ended August 22, rose by 0.8% to 240.7 from 238.8 in the previous week.

The index for Primary Articles rose by 0.7% to 270.4 while inflation for the same inched up to 8.51% from 7.7% in the preceding week. The index for Food Articles group rose by 0.9% to 272.8 while inflation linked to the index climbed to 14.53% from 13.29%. The index for Minerals group rose by 0.5% to 564.4 and the inflation based on the index surged to 3.07% from -13.26%.

The index for Fuel & Power group rose by 1.5% to 343.3 and inflation tied to the index increased to -8.77% from -10.12%. The index for Electricity jumped to 1.95% from -2.64%. The index for Manufactured Products group rose by 0.5% to 207.5 while inflation for the same was up at -0.38% versus -0.82%. The index for Food Products group rose by 3.1% to 241.5 and inflation linked to it soared to 12.38% from 9.13%.

The Government said that it was revising the inflation rate for the week ended June 27 to -1.09% from a preliminary estimate of -1.55%. The WPI for the same period has been revised to 235.8 from the provisional figure of 234.7.