Inflation dips further on lower fuel prices

India's widely tracked benchmark inflation fell slightly in the first week of this month, the Government said on Nov 20, as the slump in global commodity prices along with the steep slowdown in the domestic economy started taking effect. The annual point-to-point inflation, based on the wholesale price index (WPI), stood at 8.90% in the week ended November 8 as against the previous week's figure of 8.98%, the Commerce & Industry Ministry said. Inflation was expected to remain nearly unchanged. It had touched a 16-year high of 12.91% in the week ended Aug. 2. The annual inflation rate was 3.2% during the corresponding week of the previous year. The WPI for "All Commodities" declined by 0.2% to 235.0 from 235.5 in the previous week. The index for Primary Articles rose by 0.4% to 250.0 due to higher prices of non-food items. The index for Fuel, Power, Light & Lubricants fell 0.9% to 353.3 due to lower prices of light diesel oil (11%), furnace oil (9%), aviation turbine fuel (5%) and naphtha (4%). However, the prices of bitumen (1%) moved up. The index for Manufactured Products declined by 0.2% to 203.4. Meanwhile, the Government revised the inflation rate for the week ended Sept. 13, to 12.42% from the provisional estimate of 12.14%, while the WPI for the same period was revised to 241.7 from 241.1. Inflation might fall further after the public sector oil marketing companies cut jet fuel prices by 12% last weekend - the first fortnightly price revision.