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Inflation drops in India
NEW DELHI. Sept 28: Annual rate of inflation dropped by 0.16 percentage points to 4.04 per cent for the week ended September 13. after last week's upsurge due to hike in prices of petroleum products, says PT1.
The rate of inflation, based on the wholesale price index (WPI). stood at 4.04 per cent (provisional) compared to 4.2 per cent (provisional) for the previous week and 6.35 per cent during the corresponding week last year.
Inflation, calculated on a point-to-point basis, has been witnessing a falling tendency in the last few weeks, which even brought down the effective impact of increase in petroleum prices lower than the government's projections.
Inflation had gone up by only 0.39 percentage points last week compared to the government estimate of a direct im-
pact of 0.74 percentage point on WPI due to the hike in prices of select petroleum products.
Meanwhile, the index for 'all commodities' (base 1981-82=100) recorded a fall of 0.1 per cent to 329.3 (provisional) during the week as against 329.7 (provisional) the week before.
The annual rate of inflation based on the final index for the week ended July 19, the latest available, stood at four per cent, as against 4.2 per cent for the week based on provisional index.
During the week under review. among the three major groups in WPI. index of fuel, power, light and lubricants' and 'manufactured products' moved up while that of primary articles' went down.
The index for 'fuel, power light and lubricants', which mostly consists of commodities
under administered prince mechanism (APM). had jumped to 370.1 from 349.2 two weeks back due to increase in the prices of petroleum products in the first week of this month.
During the week, the prices of diesel fuel pumps, ferro silicon. jeeps, coconut oil and eggs firmed up. while prices of raw skins, fruits and vegetables and sulphuric acid eased substantially in the reference week.
During the week, the index for primary articles declined by 0.6 per cent to 337.4 from 339.3 in the previous week due to fall in the indices of food articles' and non-food articles'.
The index for food articles went down by 0.8 per cent to 385.6 from 388.6 the week before due to fall in prices of fruits and vegetables (-4 per cent), barley (-3 per cent), maize (-2 per cent) and arhar (-1 per cent).