Cheaper food articles eases inflation to 3.79%

New Delhi, Sept 7 (UNI) The Government's fiscal steps and RBI's monetary policies to contain inflation has brought it down to 3.79 per cent for the week ended August 25, from the previous week's 3.94 per cent.

The fall in inflation was triggered by a dip in the prices of primary food articles.

The annual inflation rate was at 5.27 per cent during the corresponding week of the previous year, an official statement said here today.

Inflation has been a major concern this year after GDP grew 9.4 per cent in 2006-07, fuelling inflation to touch six per cent in mid-January and prompting the central bank to tighten money supply in an attempt to cool demand.

Finance Minister P Chidambaram has said, ''In the last few months there has been tightening of monetary policy and credit to bring down inflation. Nevertheless, investment remains robust and it is that buoyancy in investment that is driving growth.'' The Wholesale Price Index (WPI) for all commodities for the week ended August 25, 2007 remained unchanged at its previous week level of 213.6.

The index for 'Primary Food Articles' declined by 0.1 per cent to 224.5 from 224.7 for the previous week.

The index for the 'Food Articles' group declined by 0.2 per cent to 223.3 (Provisional) from 223.7 for the previous week due to lower prices of maize, fish-marine, wheat and fruits and vegetables (one per cent each). However, the prices of moong, condiments and spices and eggs (one per cent each) moved up.

The index for 'Non-Food Articles' group rose by 0.1 per cent to 209.9 (Provisional) from 209.7 (Provisional) for the previous week due to higher prices of sunflower (five per cent), and raw cotton (three per cent).

However, the prices of raw rubber (11 per cent), raw silk (four per cent), castor seed and soyabean (two per cent each) and rape and mustard seed, copra and raw jute (one per cent each) declined.

The index for 'Fuel, Power, Light and Lubricants' group remained unchanged at its previous week's level of 322.1.

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