Reversing its upward trend, inflation fell to a two-year low of 4.07 per cent in the week ended July 23 due to cheaper food products even as prices shot up for minerals, including iron ore
The inflation numbers are still within the five per cent annual target of the Reserve Bank, which is due to review the monetary policy on July 31.
Inflation remained unchanged at the previous week's level of 4.27 per cent for the week ended July 7, despite a fall in prices of fruit and vegetables, poultry chicken, moong and masur, and some manufactured items.
The rate of inflation for the week stood\nat minus 1.14 per cent as against minus 1.61 per cent for the week ended June 6,\nofficial data released in New Delhi on Thursday.
This is the second week in a row when inflation remained in negative territory. The wholesale price index stood at 11.80 per cent during the corresponding week a year ago.
Central bank should raise key policy rates again but avoid becoming a prisoner of its own making.
Inflation further eased to 4.80 per cent for the week ended June 2 as compared to 4.85 per cent in the previous week, mainly due to decline in food prices and some fuel and manufactured items.
Inflation rose to 4.67 per cent for the week ended July 22, from 4.52 per cent in the previous week mainly due to increase in the prices of vegetables, pulses, industrial fuel and some manufactured items.
Inflation rose to 5.91 per cent during the week ended April 23 as vegetables, fruits, edible oil, industrial fuel and manufactured products became costlier.
After remaining unchanged in the previous week, inflation fell to a 40-month low of 4.83 per cent during the week ended February 19 due to cheaper edible oils, vegetables and some of the manufactured products despite higher global oil prices.
Headline inflation, as measured by the wholesale price index, was 9.7 per cent in March, 8.7 per cent in April and 9.1 per cent in the following month.
National Sample Survey Organisation, a division within the ministry of statistics, has been roped in to collect price data for the new series and a dry run is on the anvil in the next couple of months. The new series will have 2004-05 as the base year, as against 1993-94 in the present mode and will reflect a consumption basket that is relevant in today's scenario, thereby making inflation data more reliable. The new series will have 2004-05 as the base year.
There was a marginal increase in the prices of cement, and manufactured food products such as bran (6 per cent), rice bran oil (3 per cent) and sooji (1 per cent). However, prices of groundnut oil fell by 2 per cent. Although the prices of crude oil have almost touched $100 a barrel, it did not impact the inflation rate as the government has not passed on the burden to consumers.
RBI may wait for a substantial downtrend and maintain repo at the current level in its third-quarter review.
In separate petitions filed at the Telecom Disputes Settlement and Appellate Tribunal, ESPN Software India, MSM Discovery, Zee Turner and Star Den Media Services said the tariff suggested by the sectoral regulator was not commercially viable.
An analysis by Business Standard suggests that for the week ended May 10, for which data will be released next Friday, the inflation rate will range between 7.67 per cent and 8.05 per cent, depending on how the index moves.
The country's second largest two-wheeler maker Bajaj Auto Ltd (BAL) on Monday joined hands with Renault-Nissan to launch a small car in India by 2011 that will compete with Tata Motors' Nano on price point - Rs 1 lakh.
Inflation drastically fell to a two-decade low of 0.44 per cent in the first week of March as food and fuel items turned cheaper, prompting analysts to say that rate of price rise would soon turn negative.
The Sensex ended higher by 138 points at 19,367 and the 50-share Nifty advanced 43 points to close at 5,742.
Tata Motors was the top gainer among the Sensex stocks.
Inflation declined to about a 15-month low of 3.36 per cent mainly due to fall in the prices food articles like fruit and vegetables, pulses, and some manufactured items, raising hopes of cuts in the key policy rates by the Reserve Bank of India.
Inflation fell for the second consecutive week to 7.02 per cent for the week ended December 4, mainly due to cheaper primary and fuel products.
Although inflation had touched 6.12 per cent during the week ending January 6 this fiscal, but it came down to 5.95 per cent in the following week.
Amid stock market crash and global financial crisis causing concern among the investors, a fall in inflation rate definitely comes as a relief.
The Value Added Tax system has no adverse impact on consumer prices, and revenue earnings under the new regime have shot up by 15.3 per cent during the first quarter of the current fiscal, Finance Minister P Chidambaram told the Rajya Sabha on Tuesda
After remaining firm for two consecutive weeks, inflation fell marginally by 0.14 per cent to 4.26 per cent for the week ended April 24 even as prices rose for fruits, vegetables, eggs and various manufactured items, including edible oils.
The wholesale price-based inflation had shot passed 10 per cent in May putting more pressure on the Central Bank to hike the policy rates.
Reserve Bank of India Deputy Governor Rakesh Mohan said on Friday that he expected inflation to be stable and saw no pressures apart from oil prices. \n\n\n\n
BSE Capital Goods and FMCG indices surged between 1-2%
Data showed the country's wholesale price-based inflation eased to an eight-month low in January as food prices moderated, offering some relief to policymakers who have long battled to get a handle on surging prices.
Inflation dips to 8.40 per cent for the week ended November 22 from 8.84 per cent in the previous week.
The Reserve Bank on Thursday said the country's wholesale price-based inflation and industrial production data should be improved and employment data availed for effective monetary policy management.
Moody's Investors Service on Thursday slashed India's economic growth projection to 8.8 per cent for 2022 from 9.1 per cent earlier, citing high inflation. In its update to Global Macro Outlook 2022-23, Moody's said high-frequency data suggests that the growth momentum from December quarter 2021 carried through into the first four months this year. However, the rise in crude oil, food and fertilizer prices will weigh on household finances and spending in the months ahead.
Continuing decline in food prices, including vegetables, pulled wholesale price inflation to a five year low of 1.77 per cent in October.
While retail inflation soared to a nine-month high of 11.24 per cent in November, the index based on wholesale prices zoomed to a 14-month high of 7.52 per cent last month.
A sharp rise in prices of fruits, vegetables and other primary items, notably poultry chicken, and costlier manufactured products pushed up inflation by 0.10 per cent to 5.94 per cent for the week ended February 21.
Signs of a strong pickup in hiring by companies are adding to the rosier outlook for Indian households.
Industry chamber Assocham on Monday said that 2011 may witness continuation of high inflationary pressures, a view contrary to the government that expects inflation to slow down to around 6 per cent by March next year.
The overall market breadth in BSE remained positive with 1,545 stocks advancing and 1,221 stocks declining.
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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