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Lower food prices pull December WPI inflation to a three-month low (Roundup)
New Delhi, Jan 15 (IANS) Lower food prices pulled India’s annual rate of inflation based on wholesale prices to a three-month low of 3.58 per cent in December, official data showed on Monday.
As per data furnished by the Ministry of Commerce and Industry, the Wholesale Price Index (WPI) -based inflation, with the revised base year of 2011-12, was 3.93 per cent in November.
However, the WPI-based inflation rate in December 2017 was higher than 2.10 per cent reported for the corresponding month of the previous year.
“Build-up inflation rate in the financial year so far was 2.21 per cent compared to a build-up rate of 3.71 per cent in the corresponding period of the previous year,” the ministry said in a statement.
On a sequential basis, the expenses on primary articles, which constitute 22.62 per cent of the WPI’s total weightage, edged higher by 3.86 per cent, from an increase of 5.28 per cent in November.
The prices of food articles rose by 4.72 per cent from an acceleration of 6.06 per cent in the previous corresponding month.
On a year-on-year (YoY) basis, food prices in December rose by 4.72 per cent from a rise of only 0.07 per cent.
In terms of individual items, onion prices soared higher by 197.05 per cent, whereas for potatoes it plunged by (-)8.40 per cent.
In contrast, the overall vegetable prices in November rose by 56.46 per cent, against a fall of (-)26.88 per cent in the same month a year ago.
Further, the data revealed that wheat became cheaper by (-)8.47 per cent on YoY basis and the prices of pulses came down by (-)34.60 per cent, but paddy became dearer by 3.19 per cent.
On the other hand, protein-based food items such as eggs, meat and fish became expensive by 1.67 per cent during the month.
Prices of the other major group under the WPI, manufactured products, which comprise nearly 64.23 per cent of the index, recorded a 2.61 per cent rise.
The sub-category of manufactured food products registered a decline of (-)0.23 per cent.
Fuel and power prices accelerated by 9.16 per cent.
Product-wise, the price of high-speed diesel rose by 12.68 per cent during December while that of petrol climbed by 8.80 per cent and for LPG by 21.14 per cent.
According to industry body Ficci, moderation in WPI-based inflation “has come primarily owing to lower food prices”.
“The easing of inflation is a positive sign and continued efforts of government to strengthen food supply mechanism can help in bringing down food inflation further,” said Ficci President Rashesh Shah.
“As the inflation numbers are being driven largely on account of supply side factors, we urge the Reserve Bank of India to calibrate its monetary policy stance giving equal weightage to growth consideration.”
Another industry chamber — Assocham — stated that despite likely seasonal softening of prices, inflation is expected to “remain high till first quarter of FY19”.
“The policymakers need to take care of the continuous rise in the petrol and high speed diesel prices due to rise in global crude oil prices which may have an impact on import bills and subsequent impact on exchange rates,” said Assocham Secretary General D.S. Rawat.
“Besides, it may have negative impact on input prices for industry which has already started to feel pressure on its profitability.”
Ratings agency ICRA’s Principal Economist Aditi Nayar was quoted in a statement as saying that: “The divergence in the sequential trend in the CPI and WPI inflation in December 2017 was driven by food inflation, and the impact of the higher housing inflation, which was limited to the CPI.”
“The dip in the inflation for primary food articles in the WPI for December 2017 may signal some correction in the CPI inflation for food items in the ongoing month.”
Kotak Mahindra Bank’s Senior Economist Upasna Bhardwaj said: “The (Reserve Bank of India) MPC (monetary policy committee) may prefer to maintain a status quo, at least through 1HCY18, as it gets more clarity on monsoon and sustainability of high crude oil prices post the winter squeeze.”
Inflationary risks had forced the RBI to hold its key lending rate unchanged for the third time in a succession at 6 per cent in its penultimate bi-monthly monetary policy review of the fiscal last month.
The RBI is expected to conduct the final monetary policy review for 2017-18 in February.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.