India’s inflation cools down to 8 percent (Lead)

December 11th, 2008 - 4:56 pm ICT by IANS  

New Delhi, Dec 11 (IANS) India’s annual rate of inflation dropped further to 8 percent for the week ended Nov 29 from 8.4 percent the week before, government data showed Thursday.The inflation rate was 3.89 percent during the corresponding week last year.

The official wholesale price index (WPI) for all commodities during the week declined by 0.04 percent to 233.6 points from 233.7 points the week before.

Data on wholesale prices released by the commerce and industry ministry showed that the index for primary articles declined by 0.2 percent from the previous week.

The index for food articles declined by 0.4 percent, while that of non-food articles rose marginally to 234.4 points (provisional) from 234.3 points (provisional) during the week under review.

The index for fuels and lubricants, however, remained unchanged.

Though the continuous drop in inflation is welcome news, experts feel the performance of the Indian economy would depend on how developed countries stabilise their financial sectors and markets.

The inflation worries are not yet over though the rate of price rise has come down from a peak of 12.82 percent in August to 8.4 percent for the week ended Nov 29.

India’s Chief Statistician Pronab Sen said India was not completely free of worries on the inflation count, as it would continue in the manufacturing and food prices.

According to Dalip Kumar, the head of projects at the National Council of Applied Economics Research (NCAER), an economic research institution, the rate of inflation would moderate to below 5 percent by the middle of next year.

The drop would boost demand for all commodities, he added.

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