ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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PRICES-Inflation Hits Manufactured Goods

Inflation Hits Manufactured Goods THE rate of inflation as reflected in the Wholesale Prices Index (1981-82=100) was 7.3 per cent in the calendar year 1989 on a point-to-point basis, up by about 2 percentage points over the rise of 5.4 per cent registered in 1988. The uptrend in prices which commenced at end- December 1988 continued unabated till the index reached a peak of 169 by mid- September 1989. The price rise of 9.5 per cent at this point was significantly higher than that of 5.3 per cent recorded in the corresponding period of the previous year. Though all the commodity groups contributed to the price rise, the major push comes from essential wage goods like cereals, pulses, vegetables, tea, sugar and edible oils. These commodity groups, having a weight about 18.4 per cent in the general price index, accounted for about 41 per cent of the rise in the general price index as against only 17 per cent in 1988. The fall in prices from the third week of September 1989 could be attributed to the seasonal declining trend which, though late to commence by about four weeks, was pronounced in the next fiteen weeks. The decline of 1.8 per cent between mid- September and end-December 1989 was in contrast to the slight rise of 0.1 per cent witnessed in the comparable period of the previous year. All the essential commodities, viz, cereals, pulses, vegetables, milk, tea, sugar, gur and edible oils, recorded substantial declines.

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