The decline in inflation rate was despite the nine per cent hike in prices of steel ingots and four per cent increase in the prices of lubricants. It has been declining for the second consecutive week. The inflation rate during the corresponding week last year was much above the five per cent mark at 5.52 per cent.

The downward slide in the inflation rate was on account of fall in the prices of wheat, linseed, soyabean, rapeseed, mustard seed, LPG, atta, bush shirts, shirts, brass sheets, strips, carbon tools and high speed steel. But typewriter, steel ingots, coconut oil, sunflower, kardi seed, mesta and poultry chicken became dearer during the week under review.

The inflation rate has not been in doubledigits for 210 successive weeks since April 1, 1995, beating the old 1993 record where inflation was in single digits for 52 weeks in a row. Except for one week on March 20, the inflation rate had been above five per cent for four weeks though some what erratic.

Contrary to the predictions, the inflation rate had been much under control, despite the expectations that it may witness a jump due to the railway freight and budgetary hikes. But debt market update was of the view that the inflation rate would see a low levels by the end of current calender due to to normal monsoon and stable fuel prices. Due to decline in diesel prices last year, the inflation rate fell drastically to its 57 week low of 4.43 per cent in the second week of 1999. It was the lowest fall since December 13, 1997 when it stood at 4.31 per cent. The inflation rate nosedived by 0.87 per cent to 5.34 per cent on December 26, 1998, from 6.21 per cent in the previous week to witness its steepest fall in the last fiscal. It had touched thefive per cent after a gap of 35 weeks.

Inflation rate based on consumer price index for industrial workers saw a decline for the second successive month to 8.64 per cent in February from 9.38 per cent in the previous month. In just two months the inflation had clipped off 6.68 per cent due to retail prices of vegetables and essential commodities sliding. It had come down to single digits after staying in double digits realm for continuous eight months since May last year when it crossed the double digits.