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BW Businessworld

Inflation Dips To 3-Decade

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During the corresponding week a year ago, inflation stood at a 16-year high of 12.91 per cent.
"Agricultural operations have been adversely affected in several parts of the country, causing distress to farmers.
A deficit of more than 6 million hectares has been reported in paddy, which is the worst-affected crop," Prime Minister Manmohan Singh had said last week.
This is the ninth week in a row when inflation remained in negative territory even as the prices of cereals surged by 12 per cent, pulses by 18 per cent, and fruit and vegetables by 18.4 per cent on an annual basis.
Inflation is expected to be in the sub-zero region for another two months because of a high base, a senior Commerce Ministry official said.
During the week, prices of food items like barley, gram and jowar rose by two per cent each while arhar, spices, and fruit and vegetables became costlier by 1 per cent each.

Finance Minister Pranab Mukherjee had said, "We (government) are sensitive to it (price rise)... we are responsible ... will take measures as and when necessary".
Mukherjee said vegetable and milk prices have increased due to the erratic monsoon.
The weak monsoon is likely to exert upward pressure on prices of primary articles, which are already high, as this year's deficient rain in most parts of the country, especially in North-East and North-West India, is a major cause for concern, a report said.
"Rainfall deficiency has been all the more pronounced over North East and North West India -- both important from the point of view of foodgrain production," Edelweiss Securities said in a research report.
Inflation for the week ended June 6 was revised to (-)1.01 per cent from (-)1.61 per cent as estimated provisionally.

(PTI)