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Inflation sinks to historic low of 2.21%
Commodity prices continued their downward spree as inflation sank to one of the lowest-ever figures of 2.21 per cent in the last two-decades, as against a whopping 8.49 per cent a year ago, mainly due to a drastic fall in the price of vegetables and fruits.
Commodity prices continued their downward spree as inflation sank to one of the lowest-ever figures of 2.21 per cent in the last two-decades, as against a whopping 8.49 per cent a year ago, mainly due to a drastic fall in the price of vegetables and fruits.
The price change as measured by Wholesale Price Index with base year of 1993-94, also fell by another 0.06 per cent for the week ended December 8, 2001, to touch the lowest figure in the post-reforms period, despite a steep hike in the price of beef and buffalo meat, tea, masur, condiments and spices, copra and soyabean.
The WPI also fell but marginally by 0.1 per cent to 162 from 162.2 in the previous week and the index was 158.5 a year ago, while final WPI and inflation stood at their provisional levels of 162.6 and 3.04 per cent, respectively for the period ended October 13, 2001.
Economists attribute this falling spree to the sustained improvement in the international oil prices, fall in consumer demand, domestic recession and large stockpile of foodgrains in government warehouses. "The 2.21 per cent inflation is not only the lowest-ever figure in the post-reform period but also in the last two decades," eminent economist B B Bhattacharya said in New Delhi.
The All India Consumer Price Index for Agricultural and (CPI-AL) for November remained firm at the previous month's level of 313, but that for Rural Labourers (CPI-RL) rose by one point to 316 and for Urban Non-Manual Employees (CPI-UNME) rose even higher by two points to 395.
Primary Articles became cheaper and fuel and manufactured products stood firm at the previous week's level. The index for Primary Articles' group index fell by 0.4 per cent to 169.3 from 170 as both food and non-food articles became cheaper by 0.4 per cent and 0.3 per cent, respectively and the index was 162.8 in the same period the previous year.
Food Articles' group index declined to 179.5 from 180.2 owing to lower prices for vegetables (six per cent), fruits (three per cent), ragi and fish-marine (two per cent) and jowar, bajra, maize, barley, gram and urad (one per cent each).
Prices, however, rose in the case of beef and buffalo meat (11 per cent), tea (seven per cent), arhar (four per cent), masur (three per cent), pork (two per cent) and spice and condiments (one per cent). The index for Non-Food Articles' group fell to 147.8 from 148.3 due to cheaper groundnut seed (six per cent), cotton, castor and niger seeds (four per cent each), fodder (three per cent) and kardi seed (two per cent).
But prices increaed for copra (10 per cent), soyabean (six per cent), raw jute (three per cent), mesta and raw silk (two per cent each) and raw cotton and raw tobacco (one per cent each).
Fuel, Power, Light and Lubricants' group index remained firm at the previous week's figure of 230 and the index was 217.9 a year ago period.
Manufactured products' group index also stood unchanged at the previous week's level of 144.3 although prices rose for textiles, non-metallic mineral products and transport parts and equipment. However, the index was lower at 143.8 in the previous year period. Bureau Report
The WPI also fell but marginally by 0.1 per cent to 162 from 162.2 in the previous week and the index was 158.5 a year ago, while final WPI and inflation stood at their provisional levels of 162.6 and 3.04 per cent, respectively for the period ended October 13, 2001.
Economists attribute this falling spree to the sustained improvement in the international oil prices, fall in consumer demand, domestic recession and large stockpile of foodgrains in government warehouses. "The 2.21 per cent inflation is not only the lowest-ever figure in the post-reform period but also in the last two decades," eminent economist B B Bhattacharya said in New Delhi.
The All India Consumer Price Index for Agricultural and (CPI-AL) for November remained firm at the previous month's level of 313, but that for Rural Labourers (CPI-RL) rose by one point to 316 and for Urban Non-Manual Employees (CPI-UNME) rose even higher by two points to 395.
Primary Articles became cheaper and fuel and manufactured products stood firm at the previous week's level. The index for Primary Articles' group index fell by 0.4 per cent to 169.3 from 170 as both food and non-food articles became cheaper by 0.4 per cent and 0.3 per cent, respectively and the index was 162.8 in the same period the previous year.
Food Articles' group index declined to 179.5 from 180.2 owing to lower prices for vegetables (six per cent), fruits (three per cent), ragi and fish-marine (two per cent) and jowar, bajra, maize, barley, gram and urad (one per cent each).
Prices, however, rose in the case of beef and buffalo meat (11 per cent), tea (seven per cent), arhar (four per cent), masur (three per cent), pork (two per cent) and spice and condiments (one per cent). The index for Non-Food Articles' group fell to 147.8 from 148.3 due to cheaper groundnut seed (six per cent), cotton, castor and niger seeds (four per cent each), fodder (three per cent) and kardi seed (two per cent).
But prices increaed for copra (10 per cent), soyabean (six per cent), raw jute (three per cent), mesta and raw silk (two per cent each) and raw cotton and raw tobacco (one per cent each).
Fuel, Power, Light and Lubricants' group index remained firm at the previous week's figure of 230 and the index was 217.9 a year ago period.
Manufactured products' group index also stood unchanged at the previous week's level of 144.3 although prices rose for textiles, non-metallic mineral products and transport parts and equipment. However, the index was lower at 143.8 in the previous year period. Bureau Report