The index for primary articles major group rose 0.9% to 284.4 from 281.9 for the previous week. The annual rate of inflation, calculated on point to point basis, stood at 13.90% for the week ended 28 November 2009 as compared to 12.53% for the previous week and 11.57% during the corresponding week of the previous year.
Among the major contributors, the index for food articles group rose 0.7% to 291.2 from 289.2 for the previous week due to higher prices of moong, condiments & spices and arhar (3% each), fish-inland and masur (2% each) and gram, wheat, tea, fruits & vegetables and rice (1% each). However, the prices of maize and bajra (1% each) declined. The index for non-food articles group rose 1.7% to 243.5 from 239.5 for the previous week due to higher prices of raw rubber (13%), groundnut seed and castor seed (5% each), copra (2%) and linseed, raw cotton and gingelly seed (1% each). However, the prices of tobacco (2%) declined.
The food articles based inflation zoomed to 19.05% for the week ended 28 November 2009 as compared to 10.48% during the corresponding week of the previous year. This rise was mainly led by rise in prices of vegetables (31.03%), fruits (12.54%), wheat (12.60%). Potatoes grew by 102.19% in the week ended 28 November 09 on y-o-y basis.
The index for fuel, power, light and lubricants group remained unchanged at its previous week's level. The annual rate of inflation, calculated on point to point basis, stood at 0.06% over 29 November 08 as compared to 0.00% for the previous week 21 November 09 and 4.42% during the corresponding week of the previous year.
The sustained rise in index of food articles is driving primary articles led inflation. Going forward the deficient rainfall and subsequent fall in production of food products will drive up the inflation further and induce the policy makers to adopt tightening policy measures to rein in inflation.
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