Prices soar even as inflation dips to 3-decade low of (-) 1.74%

Consumers continue to reel under the rising prices of essential commodities like cereals, pulses and sugar though the official data released today revealed that inflation has dipped to over a three-decade low of (-)1.74 per cent for the week ended August 1.

Consumers continue to reel under the rising prices of essential commodities like cereals, pulses and sugar though the official data released today revealed that inflation has dipped to over a three-decade low of (-)1.74 per cent for the week ended August 1.

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During the corresponding week a year ago, inflation stood at a 16-year high of 12.91 per cent.

"Agricultural operations have been adversely affected in several parts of the country, causing distress to farmers.

A deficit of more than 6 million hectares has been reported in paddy, which is the worst-affected crop," Prime Minister
Manmohan Singh had said last week.

This is the ninth week in a row when inflation remained in negative territory even as the prices of cereals surged by 12 per cent, pulses by 18 per cent, and fruit and vegetables by 18.4 per cent on an annual basis.

Inflation is expected to be in the sub-zero region for another two months because of a high base, a senior Commerce
Ministry official said.

During the week, prices of food items like barley, gram and jowar rose by two per cent each while arhar, spices, and fruit and vegetables became costlier by 1 per cent each.