Inflation decelerates for third week in a row

The annual rate of inflation, calculated on a point to point basis, stood at (-)1.30% in the week ended June 20, 2009 as compared to (-)1.14% in the week ended June 13, 2009, the Government said. It was at 11.91% during the comparable week of last year (June 21, 2008), the Commerce & Industry Ministry said.

Inflation in the 'Primary Articles' group decreased to 5.4% in the week under reference from 5.7% in the previous week. In Food Articles group, inflation fell to 8.5% from 8.7% in the week ended June 13, 2009 due to deceleration in inflation in all components, except Fruits & Vegetables, and Milk. In Non-food Articles, inflation fell to (-) 1.9% from (-) 1.3% and (-) 0.9% in the earlier two weeks. For the ‘Minerals’ group, inflation rose to 4.4% after having been stable at 4.2% for three consecutive weeks.

In the 'Fuel & Power' group, inflation eased to (-) 12.4% in the week ended June 20 from (-) 12.8% and (-) 12.6% in the weeks of June 6 and June 13, 2009. Inflation in the 'Manufactured Products' group, declined to 0.5% from 0.8% in the previous week. 'Paper & Paper Products, Chemicals & Chemical Products and Transport Equipment & Parts are the only three sub-groups out of 12 which registered increase in inflation. Negative inflation in Basic Metals, Alloys & Products eased marginally.

Inflation in the food index for the week under consideration fell marginally to 8.9% after having been at over 9% for six weeks from the second week of May 2009. Yet, inflation remains in double digits in Cereals, Pulses, Fruits & Vegetables and Other Food Articles. The Sugar group continued to record progressively soaring inflation rates of over 25%since the first week of May 2009.