Thursday, November 06, 2008

Indian Inflation at 10.72% for the week ended October 25, 2008

The wholesale price index (WPI) Inflation increased marginally to 10.72% for the week ended Oct. 25, 2008, as compared to 10.68% in the week before.

The annual rate of inflation stood at 3.11% as on Oct. 27, 2007 i.e. a year ago. Index for Primary Articles group rose by 0.4% from the previous week.

The index for Food Articles group rose by 0.4% from previous week`s level due to due to higher prices of rice (3%) and urad and tea (2% each).

Whereas, the index for Non-Food Articles group rose by 0.8% due to higher prices of raw rubber (7%) and raw cotton (3%). However, the prices of castor seed (4%) declined.

The index for Fuel, Power, Light & Lubricants group remained unchanged at its previous week`s level.

Index for Manufactured Goods declined marginally. Food Products index declined by 0.1% due to lower prices of gur (6%) and cotton seed oil (1%). However, the prices of butter (1%) moved up.

Textiles group index declined marginally by 0.1% due to lower prices of texturised yarn and hessian & sacking bags (2% each) and hessian cloth (1%). However, the prices of woolen cloth (1%) moved up.

At the same time, the index for `Paper & Paper Products` group declined by 0.1% due to lower prices of newsprint (1%).

Whereas, the index for `Non-Metallic Mineral Products` group declined marginally due to lower prices of cement.

The index for `Machinery & Machine Tools` group rose by 0.1% due to higher prices of electric motors: phase one (1%).

The Reserve Bank of India (RBI) stepped in again to inject more liquidity in the market and has further cut the Repo rate by 50 basis points to 7.5% from the current level of 8%.

Earlier, on October 20, the Reserve Bank announced a reduction in the Repo rate under the Liquidity Adjustment Facility (LAF) by 100 basis points from 9% to 8%.

Meanwhile, the cash reserve ratio (CRR) of scheduled banks is reduced by 100 basis points from 6.5% to 5.5%.

Courtesy: myiris.com

0 comments:

Advertisements