The Planning Commission on said food prices will come down in the next two months easing the overall inflation, which is currently at over 8.5 per cent.
In view of declining inflation and recessionary conditions, the Planning Commission expects industry to cut prices in the normal course to battle economic slowdown.
The WPI inflation currently is ruling around 8.6 per cent. He said the duties like 5 per cent import duty on crude oil was abolished when international crude price touched a record high of $147 a barrel.
The wholesale price-based inflation fell after rising for four consecutive weeks. Inflation was at 17.97 per cent in the previous week.
The Bharatiya Janata Party notes with dismay the fact that the consumer price inflation in India today is the highest among all the countries of Asia-Pacific.
The wholesale price-based food inflation rose for the fourth consecutive week. In the previous week it stood at 17.94 per cent.
If the difference between provisional and final wholesale price index (WPI) numbers is taken as a leading indicator, the headline inflation rate, which is hovering around zero, is unlikely to change direction.
The Union petroleum ministry has proposed a 44 per cent increase in prices of natural gas sold under the administered price mechanism by state-owned Oil & Natural Gas Corporation and Oil India Ltd.
As gold prices turn prohibitive, traders fear a drop of as much as 50% in sales over the previous season.
The inflation rate has been falling at a steady pace, after peaking at 12.83 per cent for the week ended August 16, 2008, mainly due to declining commodity prices. However, on a week-on-week basis, the WPI rose marginally by 0.04 per cent, due to increase in prices of certain articles, including food products like fruit and vegetables, condiments and spices as well as some processed food items.
Food inflation softened to 18.22 per cent as of the week ended December 26, although potato and pulses continued to cost high. The wholesale price based inflation was 19.83 per cent in the previous week.
To be out by October, it reflects weight of components in GDP.
While bank credit growth seems to be showing signs of revival, deposits could soon emerge as the new area of concern for bankers.
With the advancement of the base year and probably a revision of commodities in the index and their weights, it is expected that the index would provide a better picture of the current scenario of prices. The finance minister said information on weekly prices of manufactured products is highly meagre.
According to government estimates, in early December, potato prices had increased 136 per cent, sugar prices doubled and pulses zoomed by over 40 per cent compared to the previous year.
Inflation for the month of August stood at 8.51 per cent, according to the new Wholesale Price Inflation (WPI) series.
India's wholesale price index, the inflation measure most widely followed by policy-makers and investors, does not need another revision after the release of the final number eight weeks after the provisional numbers, as more than three-fourths data are collected by then, Pronab Sen, chief statistician, Ministry of Statistics has said.
Data released on Thursday showed prices of essential commodities like cereals went up by 12.7 per cent, rice by 11.75 per cent, wheat 12.6 per cent and pulses rose by 42 per cent.
Wholesale price-based inflation fell to single digit at 9.97 per cent in July, owing to decline in prices of certain food and non-food items.
Inflation rose to 5.3% for the week ended November 4 from 5.09% in the previous week mainly due to increase in the prices of food and manufactured items.
The wholesale price of apple grown in Himachal Pradesh has declined to Rs 1,000-1,100 a box of 20 kg this year, against Rs 1,600-1,700 a box last year.
The wholesale prices of food items surged by 15 per cent during the week ended on September 26 against the same period last year, the government's inflation data shows.
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Indian economy is seeing signs of upward momentum helped by gradual reduction of inflationary pressure though the country's growth still remains "relatively weak", according to Paris-based think tank OECD.
The wholesale price-based inflation stood at 12.13 per cent during the corresponding week a year ago.
Top losers in the Sensex pack included M&M, SBI, Yes Bank, Asian Paints, HDFC, Tata Steel and L&T, shedding up to 2.55 per cent. The broader NSE Nifty settled 79.80 points, or 0.72 per cent, down at 10,996.10.
With inflation turning positive after 13 weeks, the Reserve Bank on Thursday said the wholesale price index may rise to six per cent by this fiscal end a development that may pose challenges to the central bank in maintaining a stable monetary policy.
Inflation has moved into positive territory for the first time since May 30. The inflation has gone up to 0.12 per cent for the week ended September 5.
Inflation turned negative for the first time in the week ending June 6. Inflation in the corresponding week last year was 12.38 per cent.
Investors' confidence has been revived in recent weeks on the likelihood the elections will usher in a new government.
Over 300 new items such as mobile phones and digital cameras would figure in the new wholesale price index that would give a better picture of the price situation. And close to 30 items would be knocked off from the new inflation series expected to be out by December.
The wholesale price index-based inflation remained negative for the 12th consecutive week primarily on high base. Inflation turned negative for the first time in the week ending June 6.
The wholesale price index during the corresponding week a year ago was as high as 12.91 per cent, while in the previous week, it stood at (-) 1.58 per cent. During the week, prices of barley, jowar and gram rose by two per cent and condiments and spices, arhar and fruits and vegetables by one per cent each.
The report said that weak global growth prospects have kept company prices in check in the international market and the same sentiments were being reflected in the domestic market. According to CMIE, prices of basic metal and metal products are projected to decline by 10.5 per cent in the current fiscal.
The prices of food items like mutton rose by 14 per cent, arhar by 9 per cent, gram by 4 per cent, fruit and vegetables by 2 per cent during the week. However, a major decline was registered in mineral index, as prices fell by 16.8 per cent mainly due to softening iron ore prices by 24 per cent and felspar by 3 per cent.
The industry department had planned to get 10,000 price quotations from producers in order to have a new-look WPI, which incorporates a better snapshot of the economy. Out of this, 8,000 products are manufactured items. However, it now emerges that the DIPP may get price quotations from only 6,400 industrial units and factories.
Inflation rose to (-)1.17 per cent for the week ended July 11 compared to (-)1.21 per cent in the previous week as food articles like pulses, cereals, fruits and vegetables turned expensive.
Inflation has risen to -1.21 per cent for the week ended July 4 against -1.55 per cent the previous week.
While existing investments pipelines are on course, newer projects, which are at conceptual stage, may be affected; companies are concerned that high inflation (the wholesale price index is above 12.6 per cent, a 16-year high) and high interest rates would dampen consumer demand growth, Confederation of Indian Industry President K V Kamath said after a meeting of industry leaders with Finance Minister P Chidambaram.
The inflation which hit a high of 13 per cent in August following spike in prices of petroleum products in the international market, has been on the decline since the outbreak of the global financial crisis in mid-September last year.
Wholesale price-based inflation remained below the psychological two-digit scores inching up marginally to 9.9 per cent in March from 9.89 per cent in the previous month.
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