Cheaper food articles eases inflation to 3.79pc

New Delhi, Sept 9: 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.

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.

The index for Manufactured Products group remained unchanged at its previous week's level of 185.6 (provisional). The index for 'Food Products' group rose by 0.2 per cent to 186.6 (Provisional) from 186.3 (Provisional) for the previous week due to higher prices of gur (three per cent) and rice bran oil, gingelly oil and soyabean oil (one per cent each).

The index for 'Paper and Paper Products' group rose by 0.3 per cent to 194.9 (Provisional) from 194.4 (Provisional) for the previous week due to higher prices of kraft paper and mg poster paper (two per cent each).

The index for 'Chemicals and Chemicals Products' group declined marginally to 202.1 (Provisional) from 202.2 (Provisional) for the previous week due to lower prices of acid (all kinds) (two per cent) and carbon black (one per cent).

However, the prices of ayurvedic medicine liquids (four per cent) moved up.

The index for 'Non-Metallic Mineral Products' group rose by 0.2 per cent to 206.9 (Provisional) from 206.5 (Provisional) for the previous week due to rise in the prices of cement.

The index for 'Basic Metals Alloys amd Metal Products' group declined by 0.2 per cent to 243.3 (provisional) from 243.8 (provisional) for the previous week due to lower prices of zinc (11 per cent) and zinc ingots (two per cent).

However, the prices of pipes and tubes (one per cent) moved up.

UNI