Costly food, chemicals to push up WPI
Inflation is expected to inch up further this week owing to a sharp increase in prices of chemicals & fertilisers, textiles, fruit & vegetables, pulses and manufactured food products such as tobacco.
By Amiti Sen & G Ganapathy Subramaniam, ET Bureau |
NEW DELHI: Inflation is expected to inch up further this week owing to a sharp increase in prices of chemicals & fertilisers, textiles, fruit & vegetables, pulses and manufactured food products such as tobacco.
The inflation figures for the week ended June 28 will be announced on Friday. Prices of petroleum products and cereals such as wheat and rice are expected to remain stable. Last week, the wholesale price index (WPI) registered an increase of 11.63%.
Government sources told ET the rise in prices of chemicals and fertilisers will contribute significantly to inflation in the week under consideration. Textiles, too, will be one of the major contributors to the rise in WPI. The government���s move to reduce input prices for textiles by removing import duty on cotton will be reflected in the WPI only after a time-lag, sources said.
Prices of vegetables and fruits will continue to drive up inflation. ���Once the prices of vegetables and fruits stabilise, the situation of rising prices will be easier to deal with. However, factors such as the recent truckers��� strike is not helping our cause,��� the official added.
Rice and wheat are unlikely to contribute to inflation, but there might be some increase in the price of cereals such as jowar and bajra, but overall there won���t be a significant rise for the entire cereals category.
Prices of pulses will continue to rise and do its bit in contributing to overall inflation. Food products in the manufacturing category, especially tobacco, will register an increase in prices during the week.
The inflation figures for the week ended June 28 will be announced on Friday. Prices of petroleum products and cereals such as wheat and rice are expected to remain stable. Last week, the wholesale price index (WPI) registered an increase of 11.63%.
Government sources told ET the rise in prices of chemicals and fertilisers will contribute significantly to inflation in the week under consideration. Textiles, too, will be one of the major contributors to the rise in WPI. The government���s move to reduce input prices for textiles by removing import duty on cotton will be reflected in the WPI only after a time-lag, sources said.
Prices of vegetables and fruits will continue to drive up inflation. ���Once the prices of vegetables and fruits stabilise, the situation of rising prices will be easier to deal with. However, factors such as the recent truckers��� strike is not helping our cause,��� the official added.
Rice and wheat are unlikely to contribute to inflation, but there might be some increase in the price of cereals such as jowar and bajra, but overall there won���t be a significant rise for the entire cereals category.
Prices of pulses will continue to rise and do its bit in contributing to overall inflation. Food products in the manufacturing category, especially tobacco, will register an increase in prices during the week.
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