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While the wholesale price index stood at 0.61 per cent in the previous week, the rate of price rise was 8.90 per cent during the corresponding week a year ago.
Even though inflation declined during the week, the prices of essential food items like fruit, tea, cereals, pulses and spices became more expensive.
In the light of falling inflation, Finance Minister Pranab Mukherjee is holding a meeting with heads of public sector banks on June 10 to stress further moderation in interest rates to spur economic growth.
"My Government is firmly committed to maintaining high growth with low inflation, particularly in relation to prices of essential agricultural and industrial commodities,"
President Pratibha Patil said while presenting the agenda of the second UPA government at the joint session of Parliament.
This is the 12th week in succession when inflation stood below one per cent.
Meanwhile, ICICI Bank today slashed the benchmark lending rate by 50 basis points to 15.75 per cent, a move that would benefit home, consumer corporate loan borrowers.
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I totally disagree with the report. None of the prices have come down!! Ric Rs.35, Dal Above Rs.50,sugar Gud are coslty. Vegitables are hitting the roof !!! School fees are doubled. A common man like me can not understand the inflation figures!!
One has never seen such a price increase in this Country for a long time. Every commodity price is going over board and particularly the essential commodities which hurts the poor more and yet wonders of wonders the whole sale price index is falling while parodixically the consumer price index is rising. What does this convey except to testify that the two indices are out of sync with each other and does not truly reflect the price situation in the Country. It would be in the fitness of things if the Government in its right earnest induce reforms and mend the ways the inflation is calculated in this Country. Importantly, added weightage should be given to basic commodities and data should also include the rental and pharmaceutical price levels which are shooting above the roof. Only such a calculation will give some credibility to inflation figures as the Senior Citizens are terribly affected by such a distorted presentation of the inflation figures as they transpire