Statement of Finance Ministry on Inflation
Annual (year-on-year) rate of inflation remained stable at 0.3 per cent for the week ended March 21, 2009, though higher by 4 basis points relative to the week ended March 14. The corresponding inflation rate in 2007-08 was 7.9 per cent.
Year-on-year Inflation by Commodity groups
The change in inflation rates in the current week by commodity groups is thus:
i. In ‘primary articles’, inflation remained stable at 3.9 per cent in the week under reference, though it fell by 9 basis points relative to the earlier week. In ‘food articles’, inflation fell to 6.3 per cent from 7.1 per cent in the previous week. In ‘non-food articles’, inflation increased to (-) 1.1 per cent compared to (-) 2.8 per cent last week. In ‘minerals’, the rate of decline continued steady at (-) 1.2 per cent for the fifth consecutive week since the week ended February 14, 2009.
ii. In ‘fuel and power’, inflation was steady at (-) 6.1 per cent in the current week, though higher by 5 basis points compared to the previous week.
iii. In ‘manufactured products’, inflation rate increased to 1.3 per cent in the current week, from 1.2 per cent last week. Inflation in most sub-groups declined or remained steady relative to rates recorded in the previous week. Notable exceptions have been in food products (oilcakes and tea & coffee processing), in beverages (soft drinks), rubber & plastics (plastic products) and non-metallic minerals products (cement).
Inflation in the combined food index (wt = 25.43 per cent) for the week ended March 21, 2009 decreased to 6.0 per cent compared to 6.2 per cent last week, due to decrease in inflation in primary food articles, particularly vegetables, though manufactured food products recorded increase.
CPI monthly inflation rates
Inflation rate measured by the Consumer Price Index for Industrial Workers (CPI-IW) decreased to 9.6 per cent in February 2009 vs. 10.5 per cent in January, in line with the decline observed in the CPIs for both Agricultural Labour (CPI-AL) and Rural Labour (CPI-RL). The corresponding monthly WPI inflation rate in February 2009 was 3.6 per cent (provisionally).
