Inflation drops further, stands at 11.44 percent

October 16th, 2008 - 2:26 pm ICT by IANS  

New Delhi, Oct 16 (IANS) India’s annual rate of inflation has further moderated, dropping to 11.44 percent for the week ended Oct 4, as compared to 11.8 the previous week, fresh government data showed Thursday.The inflation rate, based on the official wholesale price index (WPI), stood at 3.22 percent for the week ended Oct 6.

The WPI data released by the Ministry of Commerce and Industry showed an increase of 0.2 percent in the index for primary articles such as fruits and groundnut seeds over the past week.

The index for fuel, power, light and lubricants however declined 1.1 percent due to lower prices of naphtha (11 percent) , aviation turbine fuel (6 percent) and furnace oil (5 percent), while that of manufactured products such as mustard oil and textile items fell 0.5 percent.

The inflationary trend continued its southward journey for the second week in succession: it was 11.8 for the week ended Sep 27 and 11.9 the week before.

The final data for WPI for the week ended Aug 9 showed that the inflation rate was actually 12.82 percent, as against 12.63 percent based on the provisional statistics.

Former Reserve Bank of India (RBI) Governor C. Rangarajan, who also chaired the Prime Minister’s Economic Advisory Council till recently, has forecast the inflation rate to moderate to 10 percent by December.

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