Inflation rate falls further to 2.46 pc

Inflation rate falls further to 2.46 pc
UNITED NEWS OF INDIA

NEW DELHI, DECEMBER 12: Triggered by the hefty decline in vegetables and fruits prices, the inflation rate receded further by 0.39 per cent to touch 2.46 per cent on November 27, while maintaining its downward trend for second successive week. It was 2.85 per cent the week before. The inflation rate slumped despite the rise in prices of fish, maize, tanning material, groundnut, bitumin, coconut oil and hessian cloth and sacking bag.

The main factor for the decline in inflation rate was the whopping fall in prices of vegetables, fruits and gur. However, it was 7.73 per cent during the corresponding week last year. It breached the three per cent mark on November 6 after a gap of 22 weeks. The inflation rate had touched the 23-week high at 3.12 per cent on November 13. It never crossed the double digits for more than four years since April 15, 1995 when it stood at 9.90 per cent.

In contrast, the inflation rate based on consumer price index for industrial workers, which is real picture of retail prices,slumped drastically by 1.22 per cent to 0.92 per cent in October from 2.14 per cent in the previous month. It had been on a downward trend for the seventh consecutive month since April. Though it was in single digits for the tenth successive month since January this year. The lower rate of inflation rate during the current year was on account of higher base last year when the prices of vegetables touched the sky high due to fall in agricultural production.

Due to a sharp decline in the index for food articles, the official wholesale price index for all commodities(base 1981-82) took a down ward curve for the third successive week by 0.4 per cent to 366.9 on November 27 from 368.3 in the previous week. The final wholesale price index for all commodities(base 1981-82) stood at 366.5 on October two as against the provisional index of 365.2.

The inflation rate based on final index worked out to 2.32 per cent in contrast to 1.95 per cent based on provisional index.

The hike in diesel prices was necessitateddue to the jump in the prices of international petroleum crude. The inflationary effects of the recent hike are likely to be much more than in coming months.

Institute of Economic Growth (IEG) had said the inflation rate would witness a minute rise in coming months but it ruled out any sharp hike in the inflation rate. It puts the inflation rate at 4.72 per cent based on WPI in January.