Despite soaring prices negative inflation rises to -1.74 per cent

13 Aug 2009

The annual rate of inflation based on the wholesale price index stood lower further at -1.74 per cent (provisional) for the week ended 1 August 2009 against -1.58 per cent (provisional) for the previous week.

Retail prices of essential commodities, especially foodgrains and pulses as also fruits and vegetables, however, continued to rise.

The inflation rate stood at 12.91 per cent during the corresponding week of the previous year (ended 2 August 2008).

The official wholesale price index for 'all commodities' (base: 1993-94 = 100) for the week under review also showed a minor increase of 0.1 per cent to 237.2 (provisional) from 236.9 (provisional) for the previous week.

The index for the `primary articles' group rose 0.1 per cent to 262.5 (provisional) from 262.2 (provisional) for the previous week.

Among primary articles, the index for the 'food articles' group rose 0.2 per cent to 261.4 (provisional) from 261.0 (provisional) for the previous week due to higher prices of barley, jowar and gram (2 per cent each) and condiments and spices, arhar and fruits and vegetables (1 per cent each). However, the prices of tea (-9 per cent) declined.