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Inflation decline statistical in nature: Finmin

The government on Friday said the decline in inflation, which is in the negative zone for the previous six weeks, was partly on account of statistical reasons.



New Delhi: The government on Friday said the decline in inflation, which is in the negative zone for the previous six weeks, was partly on account of statistical reasons.
"It (declining inflation) is partly statistical in
nature, accruing from the high base in the corresponding
period of 2008. CPI (Consumer Price Index) inflation in
contrast remains positive," Minister of State for Finance Namo
Narain Meena told the Lok Sabha in a written reply.

Inflation, it may be mentioned, peaked in August 2008 to
about 13 per cent mainly on account of rising prices of crude
oil and other commodities in the international market.

The decline in inflation, the Minister added, was also
on account of the impact of global financial crisis and
deceleration in prices of commodities in the international
market.

"The fall in year-on-year inflation measured by WPI to
negative rates in June 2009 was an extension of the declining
trend which set in from September 2008," the Minister said.

Inflation has been in the negative zone for the six
consecutive weeks since June though the prices of essential
commodities including food items have continued to rise.

The rate of price rise was negative 1.17 per cent for the
week ended July 11.

Bureau Report

From Zee News

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