Friday, August 19 2005 14:56 Hrs (IST) - World Time -

New Delhi: Inflation fell to 3.35 per cent in the week ended August 6 from 3.84 per cent a week ago, due to cheaper food items, including vegetables, and furnace oil.

The point-to-point Wholesale Price Index (WPI) based inflation fell to 3.35 per cent during the first week of August from 8.30 a year ago, indicating the Base Year effect.

The WPI declined by 0.2 per cent to 194.1 points. The index was 187.8 points a year ago.

Government revised the final inflation upward at 4.50 per cent for the week ended June 11 compared to the provisional estimate of 4.33 per cent, while WPI was revised up to 192.9 points as against provisional level of 192.6 points.

During the week under review, world oil prices surged to 61-62 dollars a barrel on heightened supply concerns after US oil giant ExxonMobil failed to reopen a major refinery as scheduled, igniting concerns on energy supplies.

Government had raised petroleum and diesel prices by Rs 2.50 and Rs 2 per litre in June after a long gap.

However, oil marketing companies have been demanding further hike in petrol and diesel prices due to mounting losses while government is understood to have decided to play safe and decide on the matter after the monsoon session of Parliament.

The Primary Articles' group index declined by 0.8 per cent to 191 points due to cheaper food and non-food items and the index was 191.2 points in the year ago period.

Food Articles' group index was down by one per cent to 191.2 points due to lower prices of vegetables (9.2 per cent), fish-marine (six per cent) and tea (one per cent).

But prices rose for moong (four per cent) and bajra (one per cent).

The index for Non-Food Articles' group declined by 0.2 per cent to 182.6 points owing to fall in the prices of raw rubber (five per cent), fodder, gingelly seed, raw wool (two per cent each) and copra and raw silk (one per cent each).

Fuel, Power, Light and Lubricants group index fell by 0.2 per cent to 303.9 points due to five per cent fall in the prices of furnace oil, even as naphtha became costlier by one per cent. The index was 278.7 points a year ago. The heavy-weighted Manufactured Products group index stood firm at the previous week's level of 170.6 points despite rise in the prices of chemicals and machinery. The index was 166.4 points in the previous year period.