Inflation falls marginally to minus 1.58 per cent

New Delhi, Aug 6 (PTI) Inflation remained in negative
territory for the eighth consecutive week in India, falling
marginally to minus 1.58 per cent for the week ended July 25,
even though the prices of food articles continued to soar.

Though inflation, based on the wholesale price index,
declined by 0.04 percentage point against minus 1.54 per cent
in the previous week, food articles like sea fish, pulses,
fruit and vegetables, groundnut oil and sugar became dearer.

However, eggs, soyabean, oil cakes and imported edible
oil became cheaper during the reporting week. Prices of fuel,
power, and light and lubricants remained unchanged over the
previous week.

"WPI, which is in the negative zone, is an unnecessary
distraction for policy making as prices of food and other
commodities are going up," economic think-tank Indian Council
for Research on International Economic Relations (ICRIER)
Director Rajiv Kumar said.

On possible reactions by the Reserve Bank, which plans to
reverse its expansionary policies on fears that inflation can
soar again, Kumar said, "Nothing. The RBI, itself, would be
looking at the consumer price index (CPI) before deciding
anything."

Inflation during the corresponding week last year was
12.53 per cent.

The Reserve Bank of India (RBI), in its first quarterly
review of its monetary policy, has projected that inflation
will move up to five per cent by the end of March 2010.

During the reporting week, prices of sea fish went up
eight per cent, arhar by four per cent, urad by two per cent,
and fruit and vegetables, moong, mutton, wheat, masur and
condiments and spices one per cent each.

Cotton seed oil, groundnut oil and sugar, too, became
costlier by one per cent each over the previous week. Other
items that became expensive include cotton yarn, zinc ingots,
steel ingots and lead ingots.

However, prices of eggs declined two per cent, raw wool
11 per cent, soyabean five per cent, oil cakes three per cent
and imported edible oil by one per cent during the week.

Other items that became cheaper include synthetic yarn
(four per cent), polyester staple fibre (three per cent), and
newsprint and white printing paper (one per cent each).

The government revised inflation for the week ended May
30 to 0.90 per cent from the earlier reported 0.13 per cent.
PTI MG
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