Inflation slips below 12%

Inflation, based on the wholesale price index (WPI) fell below 12% for the first time in the last 13 weeks, as prices either declined or remained stable for most product groups. The annual inflation, calculated on a point-to-point basis, declined to 11.99% in the week ended September 20 as against 12.14% in the previous week, the Commerce & Industry Ministry said in a statement. The annual rate of inflation stood at 3.51% as on September 22, 2007. The market had expected inflation to dip slightly to around 12.1%. The WPI for all commodities stood nearly static at 241 versus 241.1 in the previous week.

The index for the 'primary articles' group declined by 0.2% to 251.3. The annual point-to-point inflation for the group declined to 11.29% compared to 11.56% reported last week. The index for the 'fuel & power' group remained unchanged at its previous week's level of 375.3. The rate of inflation for this group declined to 16.52% from 16.66% in the previous week. The index for the 'manufactured products' group rose by 0.1% to 207.5. Rate of inflation for this group declined to 10.55% from 10.61% in the previous week. Inflation of 30 essential commodities increased to 7.70% as on the week ending September 20 from 7.58% reported in the earlier week.