Fuel prices up on duty hikes; food inflation softens

Food prices declined slightly in the week ended Feb. 27, giving some relief to consumers, data released by the Government showed. But fuel prices climbed in the last week of February, maintaining pressure on the Reserve Bank of India (RBI) to raise interest rates to check spiraling prices. Annual inflation for the Food Articles group stood at 17.81% in the week ended Feb. 27, marginally lower than an annual rise of 17.87% in the previous week, the Commerce Ministry said today. The index for 'Food Articles' group rose by 0.2% to 285.7. The recent decision by the Government-owned oil marketing companies (OMCs) to hike prices of petrol and diesel also stoked inflation. Inflation for the Fuel & Power group rose to 11.38% in the week under review, from an annual rise of 9.59% in the previous week. The index for this major group rose by 1.6% to 361.2. Annual inflation in the Fuel & Power group was at (-)4.9% during the corresponding week of the previous year.

The WPI for the week ended Feb. 27 in respect of ‘Primary Articles' group rose by 0.4% to 284.7 from 283.7 for the previous week. Annual rate of inflation for this group stood at 15.08% for the week ended Feb. 27 compared to 15% in the previous week. It was at 5.55% during the corresponding week of the previous year. Annual inflation for the Non-food Articles group came in at 13.60% versus 13.77% in the week ended Feb. 20 while inflation for the Minerals group stood at (-)9.60% as against (-)12.38% in the preceding week. Inflation for the Mineral Oils group was at 16.43% for the week ended Feb. 27 versus 13.32% in the week ended Feb. 20. Inflation for the Coal Mining group remained static at 13.46%.