Friday, July 8 2005 17:00 Hrs (IST) - World Time -

New Delhi: Inflation reaches to 4.14 per cent as petrol, diesel and food products get costlier. However it was much lower than 6.95 per cent a year ago.

The point-to-point Wholesale Price Index (WPI) inflation rose marginally by 0.04 per cent from the previous week's 4.10 per cent while vegetable prices shot up by about 7 per cent. The rise in inflation is on the lines of the various industry chambers' prediction that the recent price hike in fuels, notably in diesel, would exert pressure on commodity prices.

WPI rose sharply by 0.5 per cent to 193.9 points due to costlier primary articles and fuels, while manufactured items became cheaper. The index was 186.2 points a year ago.

During the week in review, Government had hiked petrol and diesel prices by Rs 2.50 and Rs 2.0 a litre, leaving kerosene and cooking gas prices untouched. Global crude oil prices had touched $60 a barrel mark on speculative buying and fears of supply disruptions due to refinery glitches.

The final inflation and WPI remained unchanged at their respective provisional 5.67 per cent and 192.1 points.

The index of Primary Articles' group rose substantially by 0.5 per cent to 191.4 points due to surge in the prices of food articles and the index was 190.1 points in the previous year. Food Articles' group index rose by 0.7 per cent to 193.9 points due to costlier tea and vegetables (7 per cent each), masur, bajra and barley (2 per cent each) and wheat, moong, urad, rice and arhar (1 per cent each).

However, prices fell in the case of jowar and maize (2 per cent each) and fish-marine and condiments and spices (1 per cent each).

Fuel, Power, Light and Lubricants' group index shot up by over 2 per cent to 302.5 points owing to higher prices of diesel (8 per cent), petrol (7 per cent), light speed diesel oil and furnace oil (5 per cent each) and bitumen (3 per cent). The index was 275.6 points a year ago.

The index of heavy-weighted Manufactured Products' group declined by 0.1 per cent to 170.6 points even as food items and paper became costlier. It was 164.9 points in the previous year.

Food Products' group index rose by 0.5 per cent to 175 points due to higher prices of oil cakes (3 per cent), rice bran oil (2 per cent) and groundnut oil, khandsari oil and ghee (1 per cent each).

However, prices fell for unrefined oil (3 per cent), coconut oil (2 per cent) and gur (1 per cent).

The index for Paper and Paper Products' group was up 0.1 per cent to 177.9 points due to one per cent hike in the price of newsprint.