Food inflation falls to single digit

Food inflation fell sharply to single digit at 9.01 percent for the week ended November 12 even as prices of most agricultural items, barring potatoes, onions and wheat, continued to rise, on an annual basis.

Food inflation, as measured by the Wholesale Price Index (WPI), was 10.63 percent in the previous week.

The rate of price rise in food items stood at 11.38 percent in the corresponding week of the previous year.

According to the data released by the government today, onions became cheaper by 32.85 percent year-on-year, while potato prices were down by 7.23. Price of wheat also fell by 3.09 percent.

However, all other food items became expensive on an annual basis during the week under review.

Vegetables became 17.66 percent costlier, while pulses grew dearer by 14.28 percent, milk by 10.46 percent and eggs, meat and fish by 11.98 percent.

Fruits also became 4.59 percent more expensive on an annual basis, while cereal prices were up 2.86 percent.

Inflation in the overall primary articles category stood at 9.08 percent during the week ended November 12, as against 10.39 percent in the previous week. Primary articles have over 20 percent weight in the wholesale price index.

Inflation in non-food articles, including fibres, oilseeds and minerals, was recorded at 4.05 percent during the week under review, as against 5.33 percent in the week ended November 5.

Fuel and power inflation stood at 15.49 percent during the week ended November 12, the same as in the previous week.

Industrial growth slows to 4.1% in August

The industrial growth of the country slowed to 4.1 percent in August on account of the poor performance of the manufacturing sector and a decline in mining output, indicating an economic slowdown.

Growth in factory output, as measured in terms of the Index of Industrial Production (IIP), stood at 4.5 percent in August last year.

During the April-August period this fiscal, IIP growth stood at 5.6 percent, as against 8.7 percent in the same period last year.

Meanwhile, the IIP growth figure for July this year has been revised upward to 3.8 percent from the provisional estimate of 3.3 percent.

The output of the manufacturing sector, which constitutes over 75 percent of the index, grew by only 4.5 percent in August, compared to 4.7 percent expansion in the same month last year, according to official data released on Wednesday.

Mining output declined by 3.4 percent in August this year, as against a growth of 5.9 percent in the same month last year.

Growth in capital goods output slowed to 3.9 percent in August, in comparison to a growth of 4.7 percent in the same month of 2010.

Growth in production of intermediate goods slowed to 1.3 percent during the month under review, as against a growth of 5.8 percent in August, 2010.

Consumer durables output grew by 4.6 percent in August, compared to a growth of 8.1 percent in the corresponding month last year.

However, electricity production improved, witnessing growth of 9.5 percent in August this year, as against mere growth of a mere 1 percent in August, 2010.