labels: Economy - general
Inflation rates falls to a 5-year low at 2.97 per cent news
16 November 2007
Mumbai: The annual rate of inflation based on the wholesale price index dropped below three per cent for the first time in 5 years - to 2.97 per cent for the week ended 27 October from 3.02 per cent in the previous week - mainly due to a fall in the prices of food articles and some manufactured items.

The inflation rate stood at 5.35 per cent during the corresponding week a year ago.

During the week under review, prices of fruits and vegetables, cereals and pulses declined, while wheat, poultry chicken, fish-marine, milk and eggs became expensive.

Among manufactured items, prices of gur, paper and paper products and lead ingots declined, while products like atta, maida, imported edible oils and dry cells got dearer.

Prices of fruits and vegetables and moong declined by three per cent, urad by two per cent and jowar by one per cent. However, fish-marine, poultry chicken turned expensive by two per cent each. Even items like eggs, wheat, bajra, milk and gram became dearer during the week.

Among minerals group, prices of magnesite slipped by 77 per cent, followed by chromite by 32 per cent and fire clay by six per cent. Prices of flourites and steatite shot up by 15 per cent and nine per cent respectively.

In the manufactured food category, sunflower oil got expensive by three per cent, atta, maida by two per cent, while imported edible oil went up marginally by one per cent.

Besides, 28 per cent rise prices of forging there was a two per cent increase in prices of dry cell. During the week, newsprint and printing paper got cheaper by 1 per cent while zinc ingots declined by two per cent and lead ingots by two per cent.

Inflation figure was revised to 3.72 per cent for the week ended 1 September against the provisional figure of 3.52 per cent as the wholesale price index finally stood at 214.8 points compared to earlier estimate of 214.4 points.

Inflation during the week remained well below RBI''''s projection of close to five per cent for the current fiscal. However, going forward, there is a potential threat from soaring oil prices on inflation, analysts said.


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Inflation rates falls to a 5-year low at 2.97 per cent