ID :
53497
Thu, 04/02/2009 - 16:39
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https://www.oananews.org//node/53497
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Inflation rises marginally to 0.31 per cent
New Delhi, Apr 2 (PTI) After declining continuously for
two months, inflation rose marginally to 0.31 per cent for the
week ended March 21 as certain manufactured items including
processed food like tea and aerated water turned dearer.
However, analysts believe that inflation will again fall
and become zero and eventually negative in a few weeks, which
will give headroom to the RBI to cut rates in its monetary
policy slated for April 21.
Inflation as measured by movement in wholesale prices was
0.27 per cent for the week ended March 14 and 7.8 per cent in
the corresponding period a year ago.
"One should not focus too much on these numbers. This is
not signalling that inflation is going up. In 2-3 weeks
inflation will turn zero and negative," said D K Joshi,
principal economist, Crisil.
He said the Reserve Bank could take a call on cutting
interest rates in monetary policy later this month.
RIS Director General Nagesh Kumar said low inflation
certainly provides more space to the central bank to reduce
key rates.
He added that the marginal rise in inflation may mean
that things are brightening up. "However, one has to wait for
other data too," he added.
Despite the moderate rise, inflation is within the bounds
of the central bank's projection of 3 per cent or lower for
2008-09.
During the week, the price of blended tea went up by 48
per cent, while packaged tea and aerated water became
expensive by 22 and 10 per cent, respectively.
Other processed food items that became dearer were
soft drinks, oil cake, bajra, and condiments and spices, while
among non-food items, cement, rubber, plastic products and PVC
fittings became expensive.
In the primary articles index, the non-food articles
group rose by 1.2 per cent due to higher prices of soyabean,
which became expensive by 11 per cent; niger seed by 3 per
cent; raw rubber by 2 per cent; groundnut and mustard seed by
one per cent each.
However, fruit and vegetables, barley, jowar, raw silk,
khandsari, salt, mustard and coconut oil became cheaper.
The fuel index declined marginally due to lower prices
of furnace oil. However, ATF prices moved up by one per cent.
The index for textiles, chemical and chemical products,
basic metals alloys and metal products, transport equipment
and parts also declined along with the prices of hair oil,
steel ingots and bars.
Meanwhile, inflation for the week ended January 24 has
been revised downwards from 5.07 per cent to 4.7 per cent.
PTI
two months, inflation rose marginally to 0.31 per cent for the
week ended March 21 as certain manufactured items including
processed food like tea and aerated water turned dearer.
However, analysts believe that inflation will again fall
and become zero and eventually negative in a few weeks, which
will give headroom to the RBI to cut rates in its monetary
policy slated for April 21.
Inflation as measured by movement in wholesale prices was
0.27 per cent for the week ended March 14 and 7.8 per cent in
the corresponding period a year ago.
"One should not focus too much on these numbers. This is
not signalling that inflation is going up. In 2-3 weeks
inflation will turn zero and negative," said D K Joshi,
principal economist, Crisil.
He said the Reserve Bank could take a call on cutting
interest rates in monetary policy later this month.
RIS Director General Nagesh Kumar said low inflation
certainly provides more space to the central bank to reduce
key rates.
He added that the marginal rise in inflation may mean
that things are brightening up. "However, one has to wait for
other data too," he added.
Despite the moderate rise, inflation is within the bounds
of the central bank's projection of 3 per cent or lower for
2008-09.
During the week, the price of blended tea went up by 48
per cent, while packaged tea and aerated water became
expensive by 22 and 10 per cent, respectively.
Other processed food items that became dearer were
soft drinks, oil cake, bajra, and condiments and spices, while
among non-food items, cement, rubber, plastic products and PVC
fittings became expensive.
In the primary articles index, the non-food articles
group rose by 1.2 per cent due to higher prices of soyabean,
which became expensive by 11 per cent; niger seed by 3 per
cent; raw rubber by 2 per cent; groundnut and mustard seed by
one per cent each.
However, fruit and vegetables, barley, jowar, raw silk,
khandsari, salt, mustard and coconut oil became cheaper.
The fuel index declined marginally due to lower prices
of furnace oil. However, ATF prices moved up by one per cent.
The index for textiles, chemical and chemical products,
basic metals alloys and metal products, transport equipment
and parts also declined along with the prices of hair oil,
steel ingots and bars.
Meanwhile, inflation for the week ended January 24 has
been revised downwards from 5.07 per cent to 4.7 per cent.
PTI
