June inflation at 7.25%; tad lower than expectations

The annual rate of inflation, based on monthly WPI, has surprisingly come in lower than expectations at 7.25% (provisional) for the month of June, 2012 (over June, 2011) as compared to 7.55% (provisional) for the previous month and 9.51% during the corresponding month of the previous year.

Build up inflation in the financial year so far was 1.99% compared to a build up of 2.41 % in the corresponding period of the previous year.

The index for 'Food Articles' group rose by 1.4 percent to 209.2 (Provisional) from 206.3 (Provisional) for the previous month due to higher prices of poultry chicken (7%), gram (6%), masur (4%), fruits & vegetables, egg, arhar, rice and pork (2% each) and tea, milk, wheat and mutton (1% each). However, the prices of barley (6%), jowar, condiments & spices and ragi (2% each) and moong and bajra (1% each) declined.
The index for 'Non-Food Articles' group declined by 2.6 percent to 193.5 (Provisional) from 198.6 (Provisional) for the previous month due to lower prices of gaur seed (28%), logs & timber (9%), gingelly seed (4%), raw rubber (3%), raw cotton (2%) and linseed, flowers and groundnut seed (1% each). However, the prices of raw jute (5%), niger seed and raw silk (4% each), soyabean (3%), sunflower (2%) and mesta, safflower, coir fibre and castor seed (1% each) moved up.
The index for 'Minerals' group declined by 2.6 percent to 347.6 (Provisional) from 357.0 (Provisional) for the previous month due to lower prices of copper ore (16%), barytes (3%), crude petroleum (2%). However, the prices of magnesite (5%), manganese ore (4%), zinc concentrate (2%) and iron ore (1%) moved up.

FUEL & POWER

The index for this major group declined by 0.4 percent to 178.2 (Provisional) from 178.9 (Provisional) for the previous month due to lower prices of light diesel oil (7%), aviation turbine fuel and furnace oil (6% each) and naphtha (4%). However, the prices of petrol (7%) moved up.
The annual rate of inflation, based on monthly WPI, stood at 7.25% (Provisional) for the month of June, 2012 (over June, 2011) as compared to 7.55% (Provisional) for the previous month and 9.51% during the corresponding month of the previous year. Build up inflation in the financial year so far was 1.99% compared to a build up of 2.41 % in the corresponding period of the previous year.

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