Inflation further sinks to 5.44%

New Delhi, May 18 (UNI) The headline inflation further dipped to 5.44 per cent for the week ended May 5, as compared to 5.66 per cent the previous week.

The annual rate of inflation, calculated on a point-to-point basis, stood at 4.37 per cent during the corresponding week of the previous year, according to official figures issued here today.

''In the next couple of months, we will bring it down to the level of 5 percent from the existing 5.5 per cent,'' Prime Minister Manmohan Singh said today.

He said there are some concerns on the price rise but prices will be controlled.

''I am not happy with inflation... We are willing to take further fiscal steps to contain inflation, if members so suggest,'' Finance Minister P Chidambaram said.

He said the government was aiming to bring down inflation below 5 per cent and later down to somewhere between 4-4.5 per cent, which has been indicated as the tolerance level by the Reserve Bank of India (RBI).

Mr Chidambaram said the government was taking steps to augment supplies of food items, and attributed the increase in prices to higher demand, capital flows, commodity prices and public spending.

The Wholesale Price Index (WPI) for all commodities for the week ended May 5 rose by 0.2 per cent to 211.4 from 210.9 for the previous week.

The index for the primary articles group rose by 0.4 per cent to 219.6 from 218.8 for the previouss week.

The index for food articles group rose by 0.7 per cent to 219.8 from 218.3 for the previous week due to higher prices of eggs (8 per cent), fish-marine (5 per cent), masur (4 per cent), fruits and vegetables (3 per cent), jowar (2 per cent) and arhar, ragi and bajra (1 per cent each).

However, the prices of condiments and spices and moong (2 per cent each) and barley (1 per cent) declined.

The index for non-food articles group declined by 0.4 per cent to 203.3 from 204.2 for the previous week due to lower prices of niger seed (5 per cent), sunflower (3 per cent), raw cotton (2 per cent) and castor seed (1 per cent).

However, the prices of rape and mustard seed and linseed (1 per cent each) moved up.

The index for fuel, power, light and lubricants group rose by 0.4 per cent to 321.8 from 320.5 for the previous week due to higher prices of naphtha (7 per cent) and aviation turbine fuel (4 per cent).

However, the prices of bitumen (2 per cent) declined.

The index for manufactured products rose by 0.1 per cent to 183.9 from 183.7 for the previous week.

UNI