Inflation at 5.64% – Food WPI at 11.01

For the week ending 17 Jan 09, headline inflation (the wholesale price index, WPI) rose to 5.64%.

Food grains, cereals, vegetables and other food articles moved up. On the other hand, pulses, condiments, spices, eggs, meat, fish, oilseeds, non-food articles, fibers and minerals fell.

For the first time after Jul 08, mineral oil (petroleum product) prices rose w-o-w. The government announced a cut in administered fuel prices (petrol by Rs5, diesel by Rs2 and LPG by Rs25/cylinder). This would further dampen overall inflation.

Prices of manufactured products such as food products, beverages and chemicals, and metal products rose. Whereas edible oils, non-metallic products, machinery and transport equipment fell. Lack of price update in WPI for malt liquor during FY09 so far (41 weeks), resulted in a 25% jump in these prices, while there was a surprise 23% w-o-w jump in turpentine, synthetic resins and plastic materials.