New Delhi, Nov 23: Giving a ray of hope to RBI and the Finance Ministry, inflation fell below 5.0 per cent during the week ended November eight, but households continued to feel the pinch due to increasing prices of wheat, tea, maize, eggs, textiles, paper, metal and machines. The Wholesale Price Index (WPI) inflation fell to 4.88 per cent during the latest reported week from 5.01 per cent in the previous week. The inflation was distinctly lower at 3.45 per cent in the corresponding week in 2002-03, showing the extent of the "pinch" that an average household is now feeling.
The silver lining is that the prices of rice, fruits and vegetables, condiments and spices have been declining.
While the RBI busy season monetary policy had projected a "benign" inflation, averaging about 4.0-4.5 per cent, for 2003-04, the Centre, in its mid year economic review, hoped it would be below 4.0 per cent.
The WPI stood unchanged at previous week's level of 176.1, though the index for primary articles dipped 0.1 per cent while that of fuel and manufactured products remained static. Primary article group index fell by 0.1 per cent to 183.5 points despite costlier food articles whereas prices dipped for non-food items.
Fuel, power, light and lubricants group index was firm at previous week's level of 253.3 points but higher than 241.8 in the previous year period. Manufactured products group index also remained unchanged at previous week's level of 156.3 points, though prices of food products and chemicals fell. Bureau Report