Monsoon to be near normal, Inflation cools

The thought that monsoon could be normal brought hopes that inflation may eventually cool. After rising for weeks, inflation for the week ended April 5 fell to 7.14% from 7.41% in the previous week, the Commerce & Industry Ministry said today. Wholesale prices rose 7.14% in the week ended April 5 from a year earlier, after gaining 7.41% in the previous week as against the market expectations of 7.23%. The WPI for All Commodities for the week ended 5th April 2008 rose by 0.3% to 226.6 from 226.0 for the previous week. The index for Primary Articles rose by 0.4% to 236.0 from 235.1 for the previous week while the index for Fuel & Power increased by 0.2% to 342.0 from 341.4 due to higher prices of aviation turbine fuel. The index for Manufactured Products surged by 0.3% to 197.6 from 197.1. Back to monsoon, according to our new classification, the monsoon is likely to be near-normal. The monsoon is likely to be 99 percent of the long-term average, Science and Technology Minister Kapil Sibal said. The government would regard the monsoon as near normal if rainfall was 96-104 percent of the long-term average, he added. The forecast would be updated again in June.