Inflation rate falls further to 2.43 per cent

The annual rate of inflation based on the wholesale price index stood at 2.43 per cent (provisional) for the week ended 28 February 2009, down 0.6 per cent from 3.03 per cent (provisional) for the previous week (ended 21 February). 

The inflation rate is now at a level seen in June 2002 and down from 6.21 per cent during the corresponding week of the previous year (ended 1 March 2008).

The official wholesale price index for 'all commodities' (base: 1993-94 = 100) for the week under review rose by 0.04 per cent to 227.7 (provisional) from 227.6 (provisional) for the previous week.

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

Among primary article, the index for 'food articles' group rose 0.4 per cent to 244.2 (provisional) from 243.3 (provisional) for the previous week due to higher prices of fruits and vegetables and bajra (2 per cent each) and masur (1 per cent). However, the prices of maize, arhar and moong (-1 per cent each) declined.

The index for the `fuel, power, light and lubricants' group remained unchanged at its previous week's level of 323.5 (provisional).

The index for the `manufactured products' group declined 0.1 per cent to 199.2 (provisional) from 199.3 (provisional) for the previous week.

The index for the 'textiles' group declined 0.1 per cent to 140.4 (provisional) from 140.5 (provisional) for the previous week due to lower prices of nylon filament yarn (-2 per cent) and hessian and sacking bags (-1 per cent).

The index for the 'non-metallic mineral products' group rose 0.05 per cent to 217.1 (provisional) from 217.0 (provisional) for the previous week due to marginal increase in the price of cement.

The index for 'basic metals alloys and metal products' group declined marginally to 255.7 (provisional) from 255.8 (provisional) for the previous week due to lower price of steel ingots (plain carbon) (-13 per cent).

The index for 'machinery and machine tools' group declined 0.1 per cent to 172.2 (provisional) from 172.3 (provisional) for the previous week due to lower prices of batteries (-3 per cent).

The annual rate of inflation for the week ended 3 January 2009 stood at 5.33 per cent, as compared to 5.24 per cent (provisional) reported earlier as the final wholesale price index for 'all commodities' (base: 1993-94=100) stood at 229.2 as compared to 229.0 (provisional).