Inflation rate in India close to zero

April 16th, 2009 - 4:28 pm ICT by ANI  

New Delhi, Apr 16 (ANI): The rate of Inflation in India for the week ended April 4 fell to a 30-year low of 0.18 percent, from 0.26 percent a week earlier, government data showed on Thursday.

However, the prices of a number of food articles such as pulses, cereals, processed fish, common salt, tea, coffee, tobacco, soft drinks and liquor increased.

As a whole, the food prices went up by 1.2 per cent on weekly basis and 7.29 per cent on yearly basis.

Moreover, the cost of vegetables is 25 per cent more than it did a year ago.

According Central bank Governor Duvvuri Subbarao, slowing inflation is an “advantage” that may help strengthening consumer demand and reduce costs for businesses.

The Reserve Bank of India, which has cut interest rates five times since October, is next due to review its policy on April 21 in Mumbai.

Meanwhile, the economists have claimed that the wholesale price inflation near zero is a temporary statistical phenomena that should not be interpreted as deflation as consumer price gains remain high. (ANI)

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