Cheaper food articles bring inflation below 5 pc

New Delhi, June 10 (UNI) All possible efforts taken by the Government and RBI to soften inflation has started bearing ruits as the annual inflation slided down for the sixth consecutive week to 4.85 per cent in the week ended May 26 from 5.06 per cent a week ago, due to decline in food prices.

The annual inflation rate was 4.99 per cent during the corresponding week of the previous year, an official statement said here.

In the coming weeks also, inflation is likely to fall as in the same period last year inflation had firmed up.

Last week Finance Minister P Chidambaram said, high economic growth might put pressure on inflation, especially prices of essential commodities, if supply did not match the growing demand.

''India aims to bring down inflation to 4.0-4.5 per cent.

Inflation had come down in the recent weeks and the government was keeping a watch,'' he added.

The Wholesale Price Index (WPI) for all commodities for the week ended May 26, 2007 declined by 0.1 per cent to 211.7 from 211.9 for the previous week.

The index for Primary Food Articles declined by 0.3 per cent to 220.5 from 221.1 for the previous week.

The index for the Food Articles group declined by 0.5 per cent to 220.5 from 221.6 for the previous week due to lower prices of fruits and vegetables, barley, urad, bajra and condiments and spices (2 per cent each) and arhar and gram (1 per cent each).

However, the prices of jowar (3 per cent) moved up.

The index for Non-Food Articles group rose by 0.2 per cent to 204.6 from 204.1 for the previous week due to higher prices of raw rubber (4 per cent) and raw cotton (3 per cent).

However, the prices of sunflower (7 per cent) and copra, groundnut seed and cotton seed (1 per cent each) declined.

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