Inflation falls 5%

After rising for five consecutive weeks, inflation fell to 5.09 per cent during the week ended October 28, compared to 5.41 per cent in the previous week with drop in prices of essential commodities.

This was the fourth week in a row that wholesale prices-based inflation stood above the five per cent mark.

Inflation stood at 4.75 per cent during the corresponding week last year.

Essential commodities like pulses, sugar, fruits, vegetables saw dip in prices, while cereal prices rose marginally.

Pulses prices declined by 0.6 per cent, while fruits and vegetables became cheaper by 0.5 per cent and sugar, khandsari and gur prices fell by 0.2 per cent.

Cereal prices, however, rose moderately by 0.1 per cent.

It is rise in prices of 30 essential commodities that have been primarily responsible for rise in inflation.

Finance Minister P Chidambaram recently said that supply of essential commodities such as wheat, sugar and pulses needed to be ensured to curb inflation.

The prices of essential commodities grew 8.7 per cent of late, he had said.

On Thursday, the Cabinet Committee on Prices deferred a decision on reviewing prices of essential commodities.

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