Inflation down to 11.44%

The wholesale price index (WPI)-based inflation stood at 11.44 per cent for the week ended October 4 as compared with 11.8 per cent for the previous week, on account of decline in prices of manufactured goods.

However, inflation rate for primary articles, including food items, went up on a weekly basis. The annual rate of inflation stood at 3.22 per cent a year ago. This is the second consecutive week when the government released the inflation number during the trading hours in stock exchanges. Usually, the inflation numbers are released at 6 pm on Thursdays.

The index for manufactured products, which constitute nearly two-thirds of WPI index number, declined by half percentage point as prices of food articles like imported edible oil and rice bran oil declined. The index number for fuel component also declined by 1.1 per cent as crude oil prices have tumbled.

“The latest inflation numbers are consistent to what was expected,” said Subir Gokarn, economist (Asia Pacific) with Standard & Poor’s, a ratings and advisory firm. “We will see inflation returning to comfortable rates by March 2009,” he added.

The annual rate of inflation for primary articles group increased to 12.68 per cent for the week ended October 4, as against 11.17 per cent a week ago. In particular, the rate of inflation for food articles raced to 9.69 per cent in the reported week as against 7.61 per cent in the previous week.

Inflation of 30 essential commodities, closely tracked by the finance ministry, increased to 7.88 per cent for the week ending October 4, as against 7.74 per cent a week ago.

The final index number was also revised upward to 12.82 per cent for the week ended August 9, as against the provisional figure of 12.63 per cent.