Inflation

New Delhi: For the second week in succession inflation showed a decline, going down to 12.34 per cent as on August 23 compared to 12.40 the week before, as a result of a decline in prices of many food items including fruits and vegetables. "There is movement downward," said Commerce and Industry Minister Kamal Nath even as Prime Minister Manmohan Singh took a review of price and availability of food commodities at a meeting of Cabinet Committee on Prices (CCP).

The official data released by the Ministry of Commerce and Industry today put the wholesale price index (WPI) at 240.3 (provisional) from 240.2 (provisional) for the previous week. The price index for primary articles declined 0.4 per cent, while that of manufactured products rose 0.2 per cent.

The price index for fuel, power, light and lubricants remained unchanged at 376.2 (provisional). The annual rate of inflation based on the final index, calculated on a point-to-point basis, stood at 12.03 per cent for the week ended on June 28, as compared to 11.89 per cent (provisional). The price index for non-food articles rose 0.4 per cent due to higher prices of raw silk (14 per cent), raw cotton (three per cent) and copra (one per cent). The prices of tea moved up three per cent and that of egg, condiments and spices one per cent each.

The inflation, figures for which were released by the government today evening, came down from 12.40 per cent on August 16 amid the Finance Ministry's assertion that the rate of price rise declined to 6.9 per cent in 30 essential commodities from 7.24 per cent during the period under review. However, the Reserve Bank of India (RBI) did not show any complacency on the price front and indicated that it would continue with required monetary policy to bring down inflation to 7 per cent by the end of current fiscal.

(With inputs from PTI)