New Delhi, July 2: The inflation rate has dipped marginally to 5.87 per cent for the week ended July 19, snapping a five-week surge.
The small 0.02 per cent fall in the rate of inflation from the previous week’s level of 5.89 per cent was surprising since this was the first week that factored in the recent increase in the prices of petrol, diesel and cooking gas.
The 8 per cent increase in cooking gas prices, 6 per cent for petrol and 3 per cent for diesel did not have the anticipated effect in pushing up the inflation number with less than a week to go before the budget.
There could be two reasons for this: the first is that coal price hike — which was also raised on June 15 — hasn’t been factored into the latest wholesale price index figures; and the second was the 4 per cent fall in the price of naphtha, which is one of the main raw materials for power generation and fertiliser companies.
However, experts feel that the increase in fuel prices, especially diesel, will start having a cascading effect on transport rates in some states, including Bengal.
The fuel, power, light and lubricants’ group index shot up by nearly 2 per cent to 270.2 points due to an increase in the price of LPG, petrol and diesel. The index was 246.1 points in the year-ago period.
The inflation rate was 5.21 per cent a year ago. The WPI rose 0.3 per cent to 184 points even as the index of heavy-weighted manufactured products stood firm at the previous week’s level, while that of food products went up. The index was 173.8 points in the year-ago period.