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Inflation dips to 4.30 per cent
New Delhi, Apr 02: Lower food prices nudged India `s annual wholesale price inflation lower for the fourth straight week in the year through the week ended March 20.
New Delhi, Apr 02: Lower food prices nudged India `s annual wholesale price inflation lower for the fourth straight week in the year through the week ended March 20.
Data released by the government on Friday showed inflation, as measured by the widely-tracked wholesale price index, fell to 4.30 per cent, lower than a median estimate of 4.53 per cent in a Reuters poll of 15 analysts conducted on Thursday.
It stood at 4.78 per cent in the previous week and 6.30 per cent in the week ended March 22, 2003.
India `s wholesale price inflation is widely tracked by economists because of faster availability of data and the larger basket of commodities it tracks. The government also tracks it closely to make adjustments in the level of allowances and salaries. The less-widely tracked consumer price inflation, which has been rising in the past few months, stood at 4.13 per cent in February on the back of lower food prices.
Analysts say inflation is unlikely to fall sharply from current levels in the short term as international oil prices and a booming economy are likely to exert upward pressure. Only food prices are set to decline on the back of a bumper harvest.
The Indian economy, Asia `s third-largest, is expected to grow at 8.1 per cent in the current financial year to March, up from 4.0 per cent last year when the worst drought in 15 years cut into growth.
Data released this week showed the economy was 10.4 per cent larger in the October-December quarter of the fiscal year 2003/2004 compared with 2.0 in the year earlier period.
Food articles declined 0.3 per cent to 178.1 from 178.7 in the previous week due to lower prices of pulses, mutton, wheat, fruits and vegetables.
Non-food articles dipped 0.9 per cent to 190.8 from 192.5 because of lower oilseeds, cotton and silk prices. Fuel, power, light and lubricants rose marginally due to higher naphtha prices.
The index for manufactured goods, which accounts for over 50 per cent of the overall index and reflects demand in the economy, remained unchanged at the previous week`s level of 160.7.
The government also revised the wholesale price inflation figure for the week ended January 24 to 6.24 per cent from 6.12 per cent.
Bureau Report
India `s wholesale price inflation is widely tracked by economists because of faster availability of data and the larger basket of commodities it tracks. The government also tracks it closely to make adjustments in the level of allowances and salaries. The less-widely tracked consumer price inflation, which has been rising in the past few months, stood at 4.13 per cent in February on the back of lower food prices.
Analysts say inflation is unlikely to fall sharply from current levels in the short term as international oil prices and a booming economy are likely to exert upward pressure. Only food prices are set to decline on the back of a bumper harvest.
The Indian economy, Asia `s third-largest, is expected to grow at 8.1 per cent in the current financial year to March, up from 4.0 per cent last year when the worst drought in 15 years cut into growth.
Data released this week showed the economy was 10.4 per cent larger in the October-December quarter of the fiscal year 2003/2004 compared with 2.0 in the year earlier period.
Food articles declined 0.3 per cent to 178.1 from 178.7 in the previous week due to lower prices of pulses, mutton, wheat, fruits and vegetables.
Non-food articles dipped 0.9 per cent to 190.8 from 192.5 because of lower oilseeds, cotton and silk prices. Fuel, power, light and lubricants rose marginally due to higher naphtha prices.
The index for manufactured goods, which accounts for over 50 per cent of the overall index and reflects demand in the economy, remained unchanged at the previous week`s level of 160.7.
The government also revised the wholesale price inflation figure for the week ended January 24 to 6.24 per cent from 6.12 per cent.
Bureau Report