ID :
81615
Fri, 09/25/2009 - 01:06
Auther :
Shortlink :
https://www.oananews.org//node/81615
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Inflation up at 0.37 pc, prices of essential items soar
New Delhi, Sep 24 (PTI) Essential prices rose
exorbitantly on yearly basis, fuelling inflation to 0.37 per
cent during the second week of September from 0.12 per cent a
week ago when it first made it into positive territory after a
gap of 13 weeks.
Overall prices of raw food items climbed by 15.64 per
cent during the week ended September 12 year-on-year, driven
mainly by a 44.85 per cent rise in vegetable prices.
Among vegetables, potatoes turned costlier by 75 per
cent, pulses by 21 per cent and rice by 17 per cent.
Processed food items continued their rising trend. Their
prices were up 12.68 per cent on yearly basis as sugar turned
dearer by 43.35 per cent.
However, when seen from a weekly perspective, price rise
in essential food items did not appear that sharp except for
fresh water fish that was up 11 per cent. Other food items
rose in the range of one to two per cent or saw a decline.
The rise in inflation for the week comes despite a high
base of 12.42 per cent a year ago.
Although inflation at 0.37 per cent does not seem too
high as the rate of price rise is measured only on a yearly
basis in India, the inflation has already crossed the
psychologically important five-per cent mark for this fiscal
so far.
The inflation this fiscal was at 6.12 per cent,
marginally down from 6.62 per cent a year ago.
However, analysts said surging prices should not prompt
RBI to signal hike in interest rates as the step would not
help arrest inflation, but would instead retard growth.
Finance Minister of India Pranab Mukherjee has already
said he is not in favour of tight monetary policy till
significant signs of recovery in global economy are evident.
Crisil Principal Economist D K Joshi said, "RBI is likely
to maintain neutral stance in its second quarterly review of
the credit policy. The central bank would tinker with the
policy rates only when demand side constraints are visible
like pick in credit offtake, increase in manufacturing prices
and other factors."
The 52-week average inflation till September 12 stood at
3.22 per cent. While the average for primary articles (found
in raw form) stood at 8.37 per cent, for fuel at negative 3.09
per cent and for manufactured items at 3.58 per cent.
Though the figures reflect a skewed distribution of
inflation towards food prices, it is not reflected in the
weekly overall inflation as primary food articles have only 22
per cent weightage in it.
In consumer price inflation, where food prices have a
weight between 50 and 60 per cent, inflation is already in
double digits, as per various indices.
Within wholesale price inflation, there are, however, a
number of items like edible oils, fibres, minerals, fuels,
gas, petrol, man-made textiles, leather and leather products,
iron and steel, machine tools and transport equipment whose
prices declined during the week on yearly basis. PTI DP
SDE
exorbitantly on yearly basis, fuelling inflation to 0.37 per
cent during the second week of September from 0.12 per cent a
week ago when it first made it into positive territory after a
gap of 13 weeks.
Overall prices of raw food items climbed by 15.64 per
cent during the week ended September 12 year-on-year, driven
mainly by a 44.85 per cent rise in vegetable prices.
Among vegetables, potatoes turned costlier by 75 per
cent, pulses by 21 per cent and rice by 17 per cent.
Processed food items continued their rising trend. Their
prices were up 12.68 per cent on yearly basis as sugar turned
dearer by 43.35 per cent.
However, when seen from a weekly perspective, price rise
in essential food items did not appear that sharp except for
fresh water fish that was up 11 per cent. Other food items
rose in the range of one to two per cent or saw a decline.
The rise in inflation for the week comes despite a high
base of 12.42 per cent a year ago.
Although inflation at 0.37 per cent does not seem too
high as the rate of price rise is measured only on a yearly
basis in India, the inflation has already crossed the
psychologically important five-per cent mark for this fiscal
so far.
The inflation this fiscal was at 6.12 per cent,
marginally down from 6.62 per cent a year ago.
However, analysts said surging prices should not prompt
RBI to signal hike in interest rates as the step would not
help arrest inflation, but would instead retard growth.
Finance Minister of India Pranab Mukherjee has already
said he is not in favour of tight monetary policy till
significant signs of recovery in global economy are evident.
Crisil Principal Economist D K Joshi said, "RBI is likely
to maintain neutral stance in its second quarterly review of
the credit policy. The central bank would tinker with the
policy rates only when demand side constraints are visible
like pick in credit offtake, increase in manufacturing prices
and other factors."
The 52-week average inflation till September 12 stood at
3.22 per cent. While the average for primary articles (found
in raw form) stood at 8.37 per cent, for fuel at negative 3.09
per cent and for manufactured items at 3.58 per cent.
Though the figures reflect a skewed distribution of
inflation towards food prices, it is not reflected in the
weekly overall inflation as primary food articles have only 22
per cent weightage in it.
In consumer price inflation, where food prices have a
weight between 50 and 60 per cent, inflation is already in
double digits, as per various indices.
Within wholesale price inflation, there are, however, a
number of items like edible oils, fibres, minerals, fuels,
gas, petrol, man-made textiles, leather and leather products,
iron and steel, machine tools and transport equipment whose
prices declined during the week on yearly basis. PTI DP
SDE
