Inflation dips sharply to 8.98 pc on cheaper fuel

New Delhi, Nov 13 (PTI) The wholesale price index rate
fell sharply to 8.98 percent for the week ended November 1 on
account of declining prices of fuel and manufactured goods.

The rate came down by 1.74 percentage points from 10.72
per cent in the previous week.

The rate was 3.35 percent a year ago.

The prices of commodities which have declined during the
week include fuel items like naphtha, jet fuel, furnace oil
and light diesel oil.

Naphtha prices fell sharply by 33 percent, followed by
jet fuel, which fell by 18 percent, and furnace oil, which
declined by 13 percent.

Light diesel oil prices declined by 6 percent.

The sharp decline in prices that are not administered by
the government follows the drop in crude prices in the
international market, which slipped from a high of USD 147 a
barrel in July to less than USD 60 a barrel currently.

Apart from fuel items, prices of manufactured products
also showed a decline. The Manufactured Products Index, which
has a weight of around 64 percent, declined by 0.7 percent
mainly due to lower prices of imported edible oil, which
declined by 8 percent, and unrefined oil, which fell by one
percent.

Prices of iron and steel fell by 7 percent while cement
prices remained unchanged.

Fruit and vegetable prices also went down marginally by
0.1 percent, tea prices by 2 percent, spices prices by one
percent.

The inflation rate for the week ended September 9 was
revised upwards to 12.42 percent from the provisional
estimates of 12.14 percent. PTI DP
AM