Inflation decline statistical in nature: Finmin
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Last Updated: Friday, July 24, 2009, 22:08
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

First Published: Friday, July 24, 2009, 22:08

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