Inflation moves southward to 4.85%

New Delhi, June 15 (UNI) The headline inflation further dipped to 4.80 per cent for the week ended June 2 from 4.85 per cent a week ago on account of a decline in food and energy prices.

The annual inflation rate was 4.88 per cent during the corresponding week of the previous year, an official statement said here today.

Last week, for the first time in eight months the inflation rate fell below the five per cent level at 4.85 per cent due to cheaper food articles.

The Reserve Bank of India aims to keep inflation close to five per cent this fiscal, and bring it down to 4.0-4.5 per cent over the medium term.

However, increasing demand resulting from a 9.4 per cent economic growth during 2006-07 could still result in price rise if the supply side does not grow in proportion, Finance Minister P Chidambaram said earlier.

The Wholesale Price Index (WPI) for all commodities for the week ended June 2, 2007 rose by 0.1 per cent to 211.9 from 211.7 for the previous week.

The index for Primary Food Articles declined to 220.4 from 220.5 for the previous week.

The index for the Food Articles group declined by 0.1 per cent to 220.3 from 220.5 for the previous week due to lower prices of condiments and spices, moong and bajra (1 per cent each).

However, the prices of gram (1 per cent each) moved up.

The index for Non-Food Articles group rose by 0.1 per cent to 204.9 from 204.6 for the previous week due to higher prices of raw silk (3 per cent), rape and mustard seed (2 per cent) and sunflower, raw tobacco and groundnut seed (1 per cent each).

However, the prices of raw rubber (5 per cent) and copra (1 per cent) declined.

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