Inflation declines due to decrease in food prices

Subscribe to Oneindia News

Inflation
New Delhi, May 14: The official data showed the annual inflation declined to 9.59 percent from 9.9 percent a month ago.

The annual inflation rate based on the wholesale price index was 1.39 percent in Apr 2009 compared to 2010.

Data released by the commerce ministry shows prices of food articles jumped to 16.87 percent in Apr 2010 compared to 16.65 percent in Mar 2010.

Primary articles rose to 13.88 percent in Apr, a lower increase from the 14.1 percent the previous month.

Manufactured products became expensive by 6.7 percent during the month under review.

Government says the inflation has declined this month because of the arrival of fresh rabi crops as the main reason for the spiraling inflation is the food prices.

Government statisticians and the Reserve Bank of India predict the annual inflation will be hovering around 5 percent for the fiscal year ending in Mar 2011.

Economists are banking on a good monsoon and the weather department expects the Jun-Sep rains to be 98 percent this year, which it describes as normal.

OneIndia News

Please Wait while comments are loading...