Seasonally adjusted inflation lowest in Aug since Dec 07: Govt

Inflation could well be on its way down as the Government today said seasonally adjusted monthly inflation for August fell drastically to 5.5 per cent, the lowest since December 2007.     

Even though annual inflation rate, as conventionally measured, fell for the third week in a row, it was quite high at 12.10 per cent for the week ended August 30.     
However, if seasonal factors are done away with, annual rate of inflation for August fell significantly to 5.5 per cent against the high of 12.7 per cent in July and 29.5 per cent in June, 2008, according to a statement issued by the Finance Ministry today.     
"Annualised seasonally adjusted inflation in August 2008 has been the lowest since December 2007," the statement said.     

Seasonal factors play an important role in build-up of inflation. De-seasonalised index, therefore, is commonly used in assessing price build up, the statement added.     
Sources in the finance ministry said this indicates a possible beginning of the fall in inflation.     

This could be significant since many analysts expect inflation to rise again to 13.5 per cent in November before easing to 9 per cent in March.     

Even if annual rate of inflation, as is conventionally measured, is taken into account, inflation for primary food items, which is a main concern for the common man, has declined for the week ended August 30.     

According to the statement, inflation remained low for some of the important consumer items.