India's inflation dips marginally to 11.89%
The inflation snapped its nine-week long upsurge to decline marginally by 0.02 per cent as prices of food items fell.business Updated: Jul 24, 2008 21:52 IST
In what could be music to the government, the inflation snapped its nine-week long upsurge to decline marginally by 0.02 per cent as prices of food items like potato, maize, sea fish, tea and imported edible oils fell.
The fall in inflation, data for which was released this evening, for the week ending July 12 comes within 48 hours of the UPA government winning a crucial trust vote in Parliament, where the Opposition criticised it for the rising prices.
The inflation rate, which stood at 7.82 per cent for the week ended May 10, shot up to 11.05 per cent in June after an increase in prices of petroleum products. It further rose to 11.91 per cent for the week ended on July 5.
Inflation was 4.76 per cent during the corresponding week a year-ago.
According to official figures, the moderation was due to fall in prices of food items like potato, maize, sea fish, tea and imported edible oils, though other commodities like coffee, fruits and vegetables, mutton and certain pulses like urad, moong and arhar became expensive during the week.
Commenting on the latest inflation figure, HDFC Bank Chief Economist Abheek Barua said price rise still remains a matter of concern.
"Inflation still remains a concern and could even touch 13 per cent by October once the control over steel products is eased besides possible increase in prices of cement, edible oil and cotton after monsoon," said Barua.
"RBI is expected to raise CRR rate by 25 basis points next week," he added.
Meanwhile, a finance ministry statement said: "Out of 98 primary articles, the prices of 10 items have shown a decline, while 54 articles showed no increase."
It noted that among the manufactured products, 219 articles out of total 318 commodities showed no increase in prices during the week, while nine items became cheaper.