Inflation rate falls further to -1.58 per cent despite soaring prices

The annual rate of inflation based on the wholesale price index edged lower to -1.58 per cent (provisional) for the week ended 25 July 2009 from -1.54 per cent (provisional) in the previous week despite skyrocketing retail prices of most essential commodities.

This is the eighth consecutive week that inflation has been ruling at sub-zero levels despite the steady rise in the prices of essential commodities.

The inflation rate stood at 12.53 per cent during the corresponding week of the previous year (ended 26 July 2008).

The official wholesale price index for 'all commodities' (base: 1993-94 = 100) for the week under review rose 0.04 per cent to 236.9 (provisional) from 236.8 (provisional) for the previous week.

The index for the `primary articles' group rose 0.4 per cent to 262.2 (provisional) from 261.1 (provisional) for the previous week.

Among primary articles, the index for the 'food articles' group rose 0.8 per cent to 261.0 (provisional) from 259.0 (provisional) for the previous week due to higher prices of fish-marine (8 per cent), arhar (4 per cent), urad (2 per cent) and fruits and vegetables, moong, mutton, wheat, masur and condiments and spices (1 per cent each). However, the prices of eggs (-2 per cent) declined.