Inflation down to 8.98%

Annual rate of inflation, year-on-year, declined to 8.98 per cent for the week ended November 1, 2008, as compared with 10.72 per cent in the previous week.

Wholesale price index in the current week declined by 1.26 per cent from 238.5 as on October 25, 2008 to 235.5 on November 1, 2008, the finance ministry said in a statement.

Inflation declined to a single digit level after 21 weeks. Inflation in the same period as on November 3, 2007 was significantly lower at 3.35 per cent.

In the 'primary articles' group, the annual point-to-point inflation declined to 11.01 per cent, as compared to 11.41 per cent reported last week.

Out of a total of 98 articles, 20 articles have shown a decline in prices in the current week as compared to October 25, 2008. These included among others, wheat, maize, urad, ragi, papaya, brinjal, okara, peas, sweet potatoes, sapota, groundnut, gingelly and castor seeds, dry chillies, corriander, cardamoms, tea, iron ore and raw rubber. Another 61 articles have shown no increase in prices.
 
In the commodity group 'fuel and power', the rate of inflation sharply declined to 9.22 per cent in the current week compared to 14.09 per cent reported in the previous week.

Prices of four commodities declined and for other 14 commodities, it remained unchanged. Prices of bitumen, however, witnessed an increase of 1.72 per cent in the current week.
 
In the case of 'manufactured products', rate of inflation in the current week further declined to 8.06 per cent, as compared to 9.09 per cent in previous week.

Out of 318 commodities, a large number, 284 in all, have shown no increase in prices over the last week. In the case of 23 commodities, there has been a decline in prices. These commodities included among others, groundnut, cottonseed, rice bran, gingelly, imported and unrefined edible oils; deoiled cake; foundry and basic pig iron; CR coils, sheets, bars & rods; billets & slabs, MS bars & rounds, blooms, steel sheets & plates and other steel items; lead and zinc ingots; and PVC pipes and tubes.

Only 11 products, particularly groundnut cake, cattle feed, ceramic tiles, kraft paper, heavy & light structurals, blasting powder, tooth paste, gur, ball bearings and wires witnessed an increase in prices.
 
Inflation of 30 essential commodities increased to 7.74 per cent as on the week ended November 1, 2008 from 7.51 per cent reported in the earlier week.

There was a decline in the prices of 5 of these commodities and prices of other 16 commodities remained unchanged. Prices of remaining 9 items, viz. rice, jowar, bajra, gram, arhar, masur, potatoes, mutton, and gur witnessed some increase.