India's inflation declines to 8.58 pct in October 2010

India's annual rate of inflation, based on monthly wholesale price index (WPI), marginally declined to 8.58 percent for the month of October 2010 as compared to 8.62 percent for the previous month and 1.48 percent during the corresponding month of the previous year, according to a government statement on Monday.

The index for primary articles rose by 0.8 percent to 181.2 from 179.7 for the previous month.

The index for food articles group rose by 0.6 percent to 180.1 from 179.0 for the previous month due to higher prices of beef and buffalo meat (6 percent), barley (5 percent), pork, fruits and vegetables (4 percent each), tea (3 percent), jowar and gram (2 percent each) and ragi and milk (1 percent each). However, the prices of fish-marine (6 percent), fish-inland (3 percent), arhar, masur and bajra (2 percent each) and poultry chicken, moong and maize (1 percent each) declined.

The index for non-food articles group rose by 2.7 percent to 161.4 from 157.2 for the previous month due to higher prices of copra and raw jute (13 percent each), raw cotton (9 percent), raw rubber (7 percent), gaur seed, rose, coir fibre, niger seed and mesta (4 percent each), fodder, raw silk and sunflower (3 percent each), safflower and linseed (2 percent each) and gingelly seed, rape, mustard seed and jasmine (1 percent each). However, the prices of marigold (6 percent), castor seed (5 percent), groundnut seed (4 percent), cotton seed (2 percent), logs and timber (1 percent) declined.

The index for minerals group declined by 0.6 percent to 247.1 from 248.6 for the previous month due to lower prices of gypsum (22 percent), manganese ore (15 percent), zinc concentrate (12 percent), dolomite (10 percent), barytes (5 percent), iron ore (2 percent) and kaolin (1 percent). However, the prices of chromite (8 percent) and copper ore (5 percent) moved up.

The index for fuel, power, light and lubricants rose by 0.3 percent to 148.1 from 147.6 for the previous month due to higher prices of light diesel oil (5 percent), aviation turbine fuel (4 percent) and petrol, naphtha and furnace oil (1 percent each). However, the prices of bitumen (3 percent) declined.

The index for manufactured products rose by 0.3 percent to 128.0 from 127.6 for the previous month.

The index for food products group rose by 0.5 percent to 140.0 from 139.3 for the previous month due to higher prices of rice bran extraction and mixed spices, vanaspati, groundnut oil cake and sunflower oil, vegetables seeds, gur and other oil cakes and gram powder (besan), rice bran, powder milk, pickles, tea leaf (unblended) and cotton seed oil. However, the prices of mustard oil cake, salt and ghee, groundnut oil and cashew kernel declined.

The index for beverages, tobacco and tobacco products group rose by 0.2 percent to 144.1 from 143.8 for the previous month due to higher prices of toddy (or taddy). However, the prices of dried tobacco declined.

The index for textiles group rose by 0.8 percent to 116.9 from 116.0 for the previous month due to higher prices of polyethylene fabrics, cotton yarn (unbleached), finished or processed cotton yarn (not knitted), woollen cloth and synthetic yarn and gunny bags (non laminated), jute sacking bag, other synthetic fabrics, viscose yarn, polyester yarn, synthetic grey cloth, jute sacking cloth and coir mats and matting. However, the prices of other cotton hosiery goods and cotton knitted fabrics and woollen yarn declined.

The index for wood and wood products group declined by 0.7 percent to 148.6 from 149.7 for the previous month due to lower prices of plywood board. However, the prices of veneer wood moved up.

The index for paper and paper products group rose by 1.1 percent to 124.8 from 123.4 for the previous month due to higher prices of books/ periodicals/ journals and newsprint and kraft paper & bags. However, the prices of bristle paper board declined.

The index for rubber and plastic products group declined by 0.6 percent to 124.0 from 124.8 for the previous month due to lower prices of v belt, rubber moulded goods, other rubber tubes and bus/truck tyre, other rubber products and polyester chips. However, the prices of rigid pvc and polyester film, hdpe woven sacks and reclaimed rubber moved up.

The index for chemicals and chemical products group rose by 0.3 percent to 122.9 from 122.5 for the previous month due to higher prices of hair or body oils, vitamins and phenol or phenol extract, other pesticides, urea and wax, shaving cream, non-cyclic compound, chlorine, alcohol and mixture, formaldehyde, other organic chemicals, other inorganic chemicals, fatty acid and thermocol. However, the prices of fatty alcohol, pigment and pigment intermediates and acid (inorganic) and bleaching powder declined.

The index for non-metallic mineral products group rose by 0.1 percent to 144.4 from 144.3 for the previous month due to higher prices of concrete poles, posts and white cement.

The index for basic metals, alloys and metal products group rose by 0.4 percent to 133.8 from 133.3 for the previous month due to higher prices of silver and locks, melting scrap, sponge iron, nuts, bolts, screw, washers and billets, and wire rods, pencil ingots, pig iron, rails, steel castings, slab, rounds and steel structures. However, the prices of zinc declined.

The index for machinery and machine tools group rose by 0.4 percent to 121.0 from 120.5 for the previous month due to higher prices of capacitors, gear cutting machines, other industrial machinery, and lathes and sensors. However, the prices of electric connectors, plugs, sockets, holders, food, beverages, tobacco processing machinery and fluorescent tubes declined.

The index for transport, equipment and parts group declined by 1.1 percent to 119.5 from 120.8 for the previous month due to lower prices of gear boxes and parts and bus or mini bus, truck (6 percent each) and radiator & coolers (1 percent).

For the month of August, 2010 the final WPI for all commodities stood at 140.7 as compared to 140.3 and annual rate of inflation based on final index stood at 8.82 percent as compared to 8.51 percent reported earlier, the statement said.