Prices soar even as inflation dips to 3-decade low of (-)1.74%

New Delhi, Aug 13 (PTI) Consumers continue to reel under
the rising prices of essential commodities like cereals,
pulses and sugar though the official data released Thursday
revealed that inflation has dipped to over a three-decade low
of (-)1.74 per cent for the week ended August 1.

During the corresponding week a year ago, inflation stood
at a 16-year high of 12.91 per cent.

"Agricultural operations have been adversely affected
in several parts of the country, causing distress to farmers.
A deficit of more than 6 million hectares has been reported in
paddy, which is the worst-affected crop," India Prime Minister
Manmohan Singh had said last week.

This is the ninth week in a row when inflation remained
in negative territory even as the prices of cereals surged by
12 per cent, pulses by 18 per cent, and fruit and vegetables
by 18.4 per cent on an annual basis.

Inflation is expected to be in the sub-zero region for
another two months because of a high base, a senior Commerce
Ministry official said.

During the week, prices of food items like barley, gram
and jowar rose by two per cent each while arhar, spices, and
fruit and vegetables became costlier by 1 per cent each.

Imported edible oil became costlier by 5 per cent over
the previous week, unrefined oil by 3 per cent and sugar by
one per cent.

Among manufactured goods, prices of beer and alcohol rose
13 per cent, woollen cloth and texturised yarn 2 per cent,
benzene 9 per cent and electrodes 22 per cent.

However, cement, iron and steel prices softened
marginally.

During the week prices of aviation turbine fuel
increased by 2 per cent.

Year-on-year, the prices of milk were up nearly 4.8 per
cent, while spices were more expensive by about 4.2 per cent.

Among manufactured food products, processed fish
turned dearer by more than 42.7 per cent over the last year,
while sugar, khandsari and gur went up about 32.8 per cent.

Admitting that prices of essential commodities like
pulses, sugar and some vegetables rose, Singh had said, "In
order to contain increase in prices of essential commodities,
the central government and the state governments will have to
work together and activise the public distribution system, ...

... which is an important safety net especially for the
poor and helps cushion them against price rise."

Singh had also said the government will do "everything
possible" to put the lid on food inflation. PTI DP
DDC
NNNN