India’s inflation rate dips further to 3.92 percent (Lead)

February 19th, 2009 - 6:34 pm ICT by IANS  

New Delhi, Feb 19 (IANS) India’s annual rate of inflation dipped further to 3.92 percent during the week ended Feb 7, from 4.39 percent the week before, official data showed Thursday.
The inflation rate, based on the official wholesale price index (WPI) stood at 4.98 percent for the corresponding week of the previous fiscal, showed the statistics released by the industry ministry here.

The WPI for all commodities declined 0.2 percent to 228 (provisional) from 228.4 (provisional) the week before.

The index for primary articles declined 0.2 percent to 248.0 (provisional) from 248.5 (provisional) for the previous week, while that for manufactured products declined 0.4 percent to 199.7 (provisional) from 200.6 (provisional) the week before.

The index for fuel, power, light and lubricants, however, rose 0.5 percent to 323.5 (provisional) from 321.8 (provisional) in the previous week due to higher prices of naphtha (up 10 percent) and furnace oil (up 5 percent).

At the same time, prices of aviation turbine fuel fell 5 percent and light diesel oil by 1 percent.

According to economists, the tight monetary policy in recent months and fall in fuel prices are pushing down the inflation rate.

Dalip Kumar, the head of projects at the National Council of Applied Economics Research (NCAER), a Delhi-based think tank, said inflation rate would moderate further and close to 3 percent by March-end.

Shriram Khanna, head of the Commerce department at the Delhi School of Economics, maintained that the Indian economy would be driven by how developed countries stabilise their financial sectors and the markets.

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