Inflation declines to 4.56%

New Delhi, Sept 29 | Updated: Sep 30 2006, 06:43am hrs
Inflation, measured on wholesale price index (WPI), continued to slide for the third consecutive week after crossing the 5% mark. WPI inflation dipped to 4.56% for the week ended September 16, from 4.61% in the previous week. This was mainly due to the fall in the prices of some food items and industrial fuels.

Finance minister P Chidambaram said inflation was likely to moderate further. He, however, admitted prices of some food itemsmainly wheat and pulseswere still exerting pressure on inflation indices, especially the consumer price index. I intend to keep inflation at 4% or less, he said.

Chidambaram met RBI governor Y V Reddy later in the day and exchanged views on moderating inflation.

During the week under review, world oil prices dropped to their lowest levels in six months to about $63 a barrel. Prices dipped for vegetables, fruits, urad, jowar, maize, mutton, condiments and spices, naphtha, furnace oil, epoxy resins, steel sheets.

Price of pulses rose, however, by 0.6% during the week under review.