Inflation falls to 5.75 per cent

Inflation falls to 5.75 per cent
PRESS TRUST OF INDIA

New Delhi, August 20: Annual rate of inflation fell by a sharp 0.65 percentage points to 5.75 per cent for the week ended August 5, mainly on account of a drastic 1.1 per cent decline in the prices of primary articles.

The rate of inflation, based on wholesale price index (WPI), fell to 5.75 per cent (provisional) from 6.40 per cent (p) In the previous week. The rate of increase in prices stood at 2.85 per cent a year ago.

The sharp decline in the reference week was mainly due to a seven per cent fall in prices of fruits and vegetables. The index for `all commodities' (Base: 1993-94=100) dipped 0.3 per cent to 152.6 (p) for the week as against 153 in the previous week.

The final inflation rate based on `all commodities' stood at 6.42 per cent for the week ended June 10 stood as compared to 6.21 per cent based on the provisional index during the same period.

Price index under the major group `primary articles' fell 1.1 per cent (provisional), while the index for `manufactured products' group rose marginally by 0.1 per cent.

Prices of fruits and vegetable under the sub-group `food articles' fell 1.4 per cent to pull down `primary articles' index, while `non-food Articles' prices fell 0.3 per cent due to lower prices of raw jute and rubber.

The index of another major group 'Fuel, Power, Light &Lubricants' remained unchanged.