Inflation rate hits a record low of 0.44 per cent

The annual rate of inflation based on the wholesale price index fell to a record low for the week ended 7 March 2009, hitting 0.44 per cent (provisional), sharply lower from the previous week's (ended 28 February 2009) level of 2.43 per cent (provisional).

The inflation rate stood at 7.78 per cent during the corresponding week (ended 08 March 2008) of the previous year. This is the lowest level of inflation since the new index came into existence in April 1995 and way below the previous low of 1.13 per cent hit on 2 February 2002.

The official wholesale price index for 'all commodities' (base: 1993-94 = 100) for the week ended 7 March 2009 declined by 0.4 per cent to 226.7 (provisional) from 227.7 (provisional) for the previous week.

The index for the `primary articles' group declined by 1.0 per cent to 245.5 (provisional) from 248.1 (provisional) for the previous week.

Among primary articles, the index for 'food articles' declined by 0.7 per cent to 242.5 (provisional) from 244.2 (provisional) for the previous week due to lower prices of gram (-5 per cent), tea and fruits and vegetables (-3 per cent each), jowar and condiments and spices (-2 per cent each) and masur (-1 per cent). However, the prices of moong and fish-marine (2 per cent each) moved up.

The index for 'non-food articles' group declined by 2.1 per cent to 223.4 (provisional) from 228.3 (provisional) for the previous week due to lower prices of raw cotton and linseed (-5 per cent each), rape and mustard seed and groundnut seed (-4 per cent each), copra (-2 per cent) and gingelly seed and sunflower (-1 per cent each). However, the prices of raw rubber (3 per cent) moved up.

The index for the4 `fuel, power, light and lubricants' group declined by 0.8 per cent to 321.0 (provisional) from 323.5 (provisional) for the previous week due to lower prices of aviation turbine fuel and electricity for agriculture (-8 per cent each), light diesel oil (-7 per cent) and bitumen (-2 per cent). However, the prices of naphtha and furnace oil (3 per cent each) and electricity for domestic, commercial and industry and railway traction (1 per cent each) moved up.

The index for the manufactured products' group remained unchanged at its previous week's level of 199.2 (provisional).

Among manufactured products, the index for the 'textiles' group rose 0.1 per cent to 140.5 (provisional) from 140.4 (provisional) for the previous week due to higher prices of hessian and sacking bags and hessian cloth (1 per cent each). However, the prices of woollen yarn (-6 per cent) declined.

The index for 'paper & paper products' group declined by 0.3 per cent to 204.2 (provisional) from 204.9 (provisional) for the previous week due to lower prices of newsprint (-2 per cent).

The index for the 'chemicals and chemical products' group declined by 0.2 per cent to 214.2 (provisional) from 214.7 (provisional) for the previous week due to lower prices of oxygen gas in cylinder (-14 per cent), liquid chlorine (-3 per cent), acetylene and titanium dioxide (-2 per cent each) and acid (all kinds), oxygen, methanol and soda ash (sodium carbonate) (-1 per cent each). However, the prices of calcium ammonium nitrate n-content and BOPP film (2 per cent each) moved up.

The index for the 'machinery and machine tools' group rose 0.1 per cent to 172.4 (provisional) from 172.2 (provisional) for the previous week due to higher prices of computer and computer based systems (7 per cent). However, the prices of ball bearings (-1 per cent) declined.

The annual rate of inflation based on the final index for the week ended 10 January 2009 stood at 5.46 per cent as compared to 5.60 per cent (provisional) reported earlier as the final wholesale price index for 'all commodities' at that point stood at 229.7 as compared to 230.0 (provisional) published earlier.