Inflation fell for the sixth consecutive week, to 2.43 per cent, the lowest in over six years, as prices of food items like pulses, dairy products and edible oil softened further in the last week of February.Even the prices of manufactured items, including iron and steel, textiles, chemicals and batteries, declined during the week ended February 28.
Wholesale prices-based inflation is now at a level seen in June 2002, by falling 0.6 percentage points from 3.03 per cent a week ago. It was 6.21 per cent during the corresponding week a year ago.
Terming the decline below 3 per cent on expected lines, economists expect inflation to r
each zero in the next couple of months.
"This is on expected lines. It was during last February and March that inflation spiked. The prices of commodities, primarily oil and foodgrains, have moderated".
According to ICRIER Director, "It is no surprise. In fact, we should now begin to start worrying about deflation. We could see zero inflation in 2-3 months."
Inflation for the week ended January 3, 2009, was revised upward to 5.33 per cent from 5.24 per cent in the provisional estimates.
Wholesale prices-based inflation is now at a level seen in June 2002, by falling 0.6 percentage points from 3.03 per cent a week ago. It was 6.21 per cent during the corresponding week a year ago.
Terming the decline below 3 per cent on expected lines, economists expect inflation to r
each zero in the next couple of months."This is on expected lines. It was during last February and March that inflation spiked. The prices of commodities, primarily oil and foodgrains, have moderated".
According to ICRIER Director, "It is no surprise. In fact, we should now begin to start worrying about deflation. We could see zero inflation in 2-3 months."
Inflation for the week ended January 3, 2009, was revised upward to 5.33 per cent from 5.24 per cent in the provisional estimates.
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