31 July :The Following is the statement of Department of Economic Affairs, Ministry of Finance on inflation issued here today: “Inflation, on a week-on-week basis, has continued to remain stable. The WPI moved up only marginally from 239.0 in the week ending July 12, 2008 to 239.3 in the week ending July 19, 2008; the rate of inflation for the week ending July 19, 2008 stands at 11.98 per cent, marginally higher than the rate of 11.89 per cent reported last week.
In the ‘primary articles’ group, the annual point-to-point inflation increased to 10.24 per cent, as compared to 10.15 per cent reported last week, but lower than 10.84 per cent reported for the week ending June 28, 2008. Out of a total of 98 articles, 15 articles have shown a decline in prices as compared to July 12, 2008. These include bajra, maize, barley and jowar, papaya, okra, cabbage, onions, cardamoms, fish-marine, mustard seed and tea. Another 58 articles have shown no increase in prices.
Prices of all the 19 articles in commodity group ‘fuel and power’ have shown no increase.
In the case of ‘manufactured products’, out of a total 318 commodities, a large number, 288 in all, have shown no increase in prices over the last week. In the case of 10 commodities there is a decline in prices. These commodities include rice bran oil, groundnut oil, imported edible oil, hessian bags and cloth and nylon filament and synthetic yarn. Only 20 products, particularly basic and foundry pig iron, sugar and khandsari, cotton yarn- hanks and cones, lead ingots, groundnut and deoiled cake witnessed an increase in prices While the annual inflation rate for the group of 30 essential commodities went up from 5.82 reported for the week of July 12, to 6.67 reported now, it has remained in the range of 5.7 to 6.7 per cent in the 16 weeks of the current fiscal year. Prices of essential commodities which include food grains, pulses, edible oils, vegetables, dairy products and some other commodities including kerosene, soap and safety matches have generally been stable.
All the three Consumer Price Indices indicate some decline in inflation in June 2008 compared to May 2008. Inflation measured by Consumer Price Index – Industrial Workers declined to 7.69 per cent in June 2008 compared to 7.75 per cent in May 2008. Inflation measured by Consumer Price Indices for Agriculture and Rural Labourers in June 2008 was also lower at 8.77 per cent and 8.75 per cent, respectively, compared to inflation of 9.11 per cent and 8.84 per cent, respectively, in May 2008.”