Inflation skids to a 7-year low of 3.03 per cent

The annual rate of inflation based on the wholesale price index fell to a seven-year low of 3.03 per cent (provisional) for the week ended 21 February against 3.36 per cent (provisional) for the previous week and 5.69 per cent during the corresponding week of the previous year (ended 23 February 2008).

The official wholesale price index for 'all commodities' (base: 1993-94 = 100) for the week under review declined by 0.1 per cent to 227.6 (provisional) from 227.8 (provisional) for the previous week.

The index for the `primary articles' group declined by 0.2 per cent to 247.5 (provisional) from 248.1 (provisional) in the previous week.

Among primary articles, the index for 'food articles' group declined by 0.4 per cent to 243.3 (provisional) from 244.2 (provisional) for the previous week due to lower prices of masur (-3 per cent), tea and fruits and vegetables (-2 per cent each) and bajra, jowar and gram (-1 per cent each). However, the prices of maize (2 per cent) and arhar (1 per cent) moved up.

The index for 'non-food articles' group declined marginally to 228.3 (provisional) from 228.4 (provisional) for the previous week due to lower prices of raw silk (-7 per cent), copra (-3 per cent) and rape and mustard seed and gingelly seed (-1 per cent each). However, the prices of raw rubber (3 per cent) moved up.

The index for the  `fuel, power, light & lubricants' group remained unchanged at its previous week's level of 323.5 (provisional). However, there was 4 per cent decline in price of aviation turbine fuel and 1 per cent increase in the price of furnace oil during the week.

The index for this major group declined by 0.1 per cent to 199.3 (provisional) from 199.5 (provisional) for the previous week.

The index for 'textiles' group declined by 0.1 per cent to 140.5 (provisional) from 140.7 (provisional) for the previous week due to lower prices of hessian and sacking bags and hessian cloth (-2 per cent each).

The index for 'basic metals alloys and metal products' group declined by 0.6 per cent to 255.8 (provisional) from 257.4 (provisional) for the previous week due to lower prices of nickel alloy (-24 per cent), alloy stainless steel (-21 per cent), zinc ingots (-8 per cent), MS bars and rounds (-6 per cent), alloy steel casting and pipes and tubes (-5 per cent), angles, channels and sections (-3 per cent), other iron steel (-2 per cent) and lead ingots (-1 per cent). However, the prices of joist and rolls (17 per cent) and foundary pig iron and basic pig iron (3 per cent each) moved up.

The index for 'machinery and machine tools' group rose 0.1 per cent to 172.3 (provisional) from 172.2 (provisional) for the previous week due to higher prices of other electrical equipment and systems and power driven pumps (2 per cent each).

The index for 'transport equipment and parts' group declined by 0.3 per cent to 175.6 (provisional) from 176.1 (provisional) for the previous week due to lower prices of bus chassis (diesel) (-5 per cent).

The annual rate of inflation based on the final index for the week ended 27 December 2008 stood at 5.86 per cent as compared to 5.91 per cent (provisional) reported earlier vide press note dated 9 January 2009 as the final wholesale price index for 'all commodities' (Base: 1993-94=100) stood lower at 229.4 as compared to 229.5 (provisional).