Inflation rate nosedives to 85-week low of 3.32%

New Delhi, Oct 14: Despite the persistent uncertainty in the neighbourhood, the annual rate of inflation nosedived by hefty 1.54 per cent to touch 85-week low at 3.32 per cent during the week ended September 29. A marginal rise in wholesale price index was noted. It was 4.86 per cent the week before. It had breached the seven per cent at 7.77 per cent during the corresponding week last year.

The recent inflation rate was the lowest registered since February 19, 2000, when it stood at 3.32 per cent. It was
also the lowest inflation rate recorded since the Wholesale Price Index base was changed to new 1993-94 base.

The latest sharp fall in the inflation rate was despite the hike in prices of food articles and manufactured products such as gram, rice bran and dry cells.

Financial experts are of the view that the inflation rate would continue to recede further in coming months on account of sluggish demand. The international oil prices were subdued despite the expectation that they would shoot up sharply in the post-September 11 scenario.

In contrast, the inflation rate based on Consumer Price Index for industrial workers zoomed up by 1.15 per cent in August to touch 5.19 per cent from 4.04 per cent in the previous month.

Triggered by the rise in the index for manufactured products, the official Wholesale Price Index for all commodities (base 1993-94) rose by 0.1 per cent to 162 during the week ended September 29 as against 161.9 in the previous week. It was 156.8 during the corresponding week last year.

The final Wholesale Price Index for all commodities (base 1993-94) stood at 161.8 during the week ended August 4 as against the provisional index of 161.4.

— UNI