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| Inflation unchanged at 0.61%, rate cut on anvil |
| Press Trust of India / New Delhi May 28, 2009, 12:30 IST |
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 Inflation remained unchanged at 0.61 per cent for the week ended May 16 in comparison to the previous week, giving head room to the government to initiate expansionary measures.
Inflation stood at 8.66 per cent during the same week a year ago.
"Inflation is already reasonably down. There has been a little bit improvement ... So you know, we have some leverage," finance minister Pranab Mukherjee had said yesterday during his first interaction with the media after taking charge earlier this week.
He, however, did not spell out measures that the government is considering to stimulate the economy.
This is the 11th week in a row when inflation stood below one per cent, indicating the possibility of a softer stance towards interest rates.
During the week, prices of food items like tea shot up 10 per cent, barley two per cent, and moong and urad one per cent each.
Mukherjee had said, "One of the first steps I propose to take is to meet bankers and get them committed to a more benign plan of action."
"Industry and business have been hurt by the cost of finance and its easy availability ... The cost and the speed with which finance can be accessed remains a matter of concern," he said.
At the same time, the prices of raw cotton went up 2 per cent while minerals like barytes jumped 19 per cent and felspar 2 per cent.
However, the prices of gram, fruit and vegetables, and jowar went down one per cent each.
Year-on-year, the prices of cereals went up more than 12 per cent, pulses 14.3 per cent, and fruit and vegetables 8.8 per cent. At the same time, the prices of milk have gone up nearly 6.4 per cent over last year, while spices were more expensive, by about 7.6 per cent.
Among manufactured food products, processed fish turned dearer by more than 42.7 per cent over last year and sugar, khandsari and gur went up about 30 per cent.
During the week, aviation turbine fuel and furnace oil were more expensive by 2 per cent each.
Also, the prices of unrefined oil shot up 21 per cent, malted food 7 per cent and imported edible oil 3 per cent. Even potable country liquor was more expensive by 7 per cent.
The prices of nylon filament yarn and cotton yarn-cones went up by one per cent each while the iron and steel prices firmed up by 0.1 per cent.
However, the bicycles and spirit prices declined by one per cent each.
Inflation for the week ended March 21 was revised upwards to 0.84 per cent from 0.31 per cent, as estimated provisionally.
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