Inflation declines to 10-month low of 5.91%

Wholesale Price Index (WPI) based inflation rate fell to a 10-month low of 5.91 per cent for the week ended December 27, 2008 due to cheaper food items and manufactured goods.

Inflation rate stood at 6.38 per cent in the previous week and 3.74 per cent in the corresponding week of 2007. Inflation rate has been falling for ninth consecutive weeks now.

The primary articles group in the WPI declined by 50 basis points from the previous week while manufactured products group declined by 30 basis points.

The group on fuels, however, remained unchanged.

Among primary articles, food items group decreased by 70 basis points as vegetables were cheaper by three per cent, jowar by five per cent, eggs and bajra by one per cent as compared to the previous week. Non food items showed a marginal decline.

In the manufactured goods group, imported edible oil and newsprint was cheaper by a per cent each, while polyester fiber was cheaper by two per cent, as compared to the previous week.

Inflation rate for the week ended November 11, 2008, has been revised downwards to 8.7 per cent from 8.98 per cent.