Friday, July 15 2005 14:40 Hrs (IST) - World Time -

New Delhi: The recent price hike in petro products, notably diesel, appears to have exerted no pressure on commodity prices with inflation falling to 4.09 per cent in the week ended July two, mainly due to cheaper food items.

The point-to-point Wholesale Price Index (WPI) inflation fell marginally by 0.05 per cent from the previous week's 4.14 per cent and it was as high as 7.08 per cent in the previous year period, showing that the Base year effect helped in the fall in general price level.

WPI fell by 0.2 per cent to 193.6 points despite fuels becoming costlier. However, primary articles became cheaper, while manufactured items' prices remained unchanged to a great extend. The index was 186 points a year ago.

Government had hiked petrol and diesel prices by Rs 2.50 and Rs 2.0 a litre, but kerosene and cooking gas prices were kept untouched.

During the week in review, global crude oil prices had surpassed 60 dollars a barrel in the first half fearing that global refining capacity would be unable to keep pace with rising demand, but later fell to 56.85 dollars due to reports of increased inventories in the US.

The final inflation was revised upwards to 5.67 per cent during the week ended May seven as compared to the provisional estimate of 5.61 per cent, while WPI stood corrected at 192.1 points in the first week of May against the provisional level of 192 points.

Decline of 1.3% in primary articles group Index Primary Articles' group index declined by 1.3 per cent to 188.9 points due to a substantial to marginal fall in the price of food and non-food products and the index was 188.8 points in the previous year period.

The index for Food Articles' group was down 1.7 per cent to 190.7 points due to cheaper fruits and vegetables (eight per cent) and barley and wheat (one per cent each).

However, prices increased in the case of eggs, poultry chicken, arhar and urad (two per cent each) and jowar, maize, moong, pork, tea, condiments and spices and masur (one per cent each).

Non-food articles group index decline by 0.3%

Non-Food Articles' group index declined by 0.3 per cent to 179.8 points due to lower prices of logs and timber (nine per cent), copra (three per cent) and gingelly seed (one per cent), even as prices rose for safflower (eight per cent), raw rubber (two per cent) and raw tobacco, linseed, raw jute, raw silk and fodder (one per cent each).

The index for Fuel, Power, Light and Lubricants' group index rose substantially by 0.5 per cent to 303.9 points due to costlier naphtha (six per cent), light diesel oil (five per cent) and furnace oil (four per cent). The index was 275.1 points in the year-ago period.

Manufactured Products' group index remained unchanged at the previous week's level of 170.6 points despite costlier food products, beverages tobacco, chemicals, machinery and transport equipment and the index was 165.2 points in the previous year period.