New Delhi, Nov. 19 (NNN): Country’s inflation rate during the week ended November 6 went up to 7.76 per cent due costlier petrol, diesel and LPG amid fears that it could rise further in the coming weeks after the full effect of the second round of price hike in petro products during the period.
The Wholesale Price Index (WPI) inflation surged by 0.70 per cent from the previous week's level of 7.06 per cent even as there was decline in the prices of primary and manufactured products.
The price hike in petroleum products effected from midnight of November 4 could have far reaching consequences due to delayed direct and indirect linkage of petroleum products' price hike, especially that of diesel, which forms the bulk of transportation costs.
Besides costlier transport fuels and cooking gas, there was a 4.0 per cent hike in the price of furance oil, which pushed up substantially Fuel, Power, Lights and Lubricants' group index by over 3.0 per cent to 291.3 points and it was 255.2 points in the year ago period.
As per the WPI data, there was nine per cent increase in the price of diesel, eight per cent for LPG and six per cent in petrol during the latest reported week.
Government revised the point-to-point inflation to 8.15 per cent for the week ended September 11 as against the provisional 7.87 per cent.
The WPI stood corrected at 189.7 points during the second week of September as compared to provisional figure of 189.2 points.
With inflation hovering over 7 per cent since July mainly due to high global oil prices, Finance Minister P Chidambaram recently put the onus on states to cut sales tax on petroleum products to moderate inflation.
During the latest reported week, the WPI was up by 0.4 per cent to 190.3 points despite cheaper non-food articles and some of the manufactured products, mainly food products and the index was 176.6 points in the year ago period.
The index of mass consumption Primary Articles' group fell by 0.3 per cent to 192.4 points even as food articles became costlier and it was 183.1 points in the previous year period.
An economic think tank IEG had cautioned that recent hike in petro-prices might lead to "spin-off" effects on the other commodities' prices in the coming months.
During the week in review, international oil markets saw volatility with prices once falling below 49 dollars and to later hover around $50.
Meanwhile, food Articles' group index rose by 0.2 per cent to 192.3 due to higher prices of beef and buffalo meat (eight per cent), poultry chicken (five per cent), barley (two per cent) and moong and ragi (one per cent each).
However, prices fell in the case of arhar and bajra (two per cent each) and maize and condiments and spices (one per cent each).
The index for Non-Food Articles' plummetted by 1.4 per cent to 184.4 points due to cheaper soyabean (19 per cent), fodder (13 per cent), cotton seed (three per cent) and raw silk and raw cotton (one per cent each).
But prices moved up for mesta (six per cent), copra and raw jute (four per cent), gingelly seed (three per cent), raw rubber (two per cent) and skins and groundnut seed (one per cent each).