For the first time since the new wholesale price index (WPI) series started in 1995, India’s annual rate of inflation has turned negative, falling to minus 1.61 percent for the week ended June 6, leading to fears that this would lead to hoarding of food articles.

New Delhi, June 18 (IANS) For the first time since the new wholesale price index (WPI) series started in 1995, India’s annual rate of inflation has turned negative, falling to minus 1.61 percent for the week ended June 6, leading to fears that this would lead to hoarding of food articles.

The inflation rate, which was 0.13 percent in the previous week, had last turned negative in 1977.

The WPI for all commodities rose 0.04 percent primarily due to a rise in the indices for non-food articles, manufactured products, and fuel, power, light and lubricants, showed data released by the commerce and industry ministry Thursday.

While the index for primary articles declined 0.7 percent, that for fuel and power rose 0.7 percent. The index for manufactured products rose 0.1 percent.

The final data for the week ended April 11 showed that the revised annual inflation rate actually stood at 0.96 percent as against 0.26 percent reported earlier based on provisional figures.

Sri Ram Khanna, the head of the commerce department at Delhi School of Economics, said ‘the negative inflation was expected’ and attributed it to static demand and adequate supply of commodities.

He was also of the view that the inflation figures would fluctuate and would revive only during the festive season around October this year.

Dalip Kumar, head of projects at the National Council of Applied Economic Research (NCAER), a Delhi-based think tank, said the inflation rate turning negative would lead to hoarding of food commodities.

‘Demand is low. Traders will now begin hoarding and black marketing food items like fruits, vegetables and cereals. The government will have to take some steps,’ Kumar told IANS.

Source : India Forums.

New Delhi, May 21 Inflation edged up in early May on account of higher food prices, but held near a three-decade low, giving more freedom to the RBI to take steps to support a slowing economy.

The annual Wholesale Price Index-based inflation rose 0.61 per cent during the week ended May 9, higher than 0.48 per cent during the previous week. The increase in headline inflation was primarily on account of food articles, with year-on-year inflation in items such as vegetables (21 per cent), cereals (12 per cent) and pulses (15 per cent) continuing to remain in double digits.

Wholesale prices may exhibit a declining trend for a few weeks in the coming months, though that does not mean India is in the grip of deflation, the RBI Governor, Mr D. Subbarao, had said last week.

Headline inflation has held below 1 per cent for two months, after reaching a 16-year high of 12.91 per cent last August.

Source – The Hindu Business Line.

Inflation eased to 0.18 per cent, the lowest ever in the last three decades, even as prices of food articles like pulses, cereals and vegetable hardened during the week ended April 4.

The wholesale price-based index declined by 0.08 per cent against 0.26 per cent in the previous week. The decline was mainly due to higher base effect and falling prices of some manufactured products. The inflation stood at 7.71 per cent in the same wee k a year ago.

The consistent decline in inflation but rising food prices present a difficult choice before the RBI to cut policy rates or not even as the industry clamours for easing of interest rates.

During the week, prices of food items like vegetable, pulses and imported edible oil were expensive during the week. Even the jet fuel, naptha and other fuel items were dearer during the week. – PTI

Inflation declined to 0.26 per cent, the lowest ever in more than three decades, for the week ended March 28 mainly on account of food items and mineral products, fuelling expectations of rate cuts by the Reserve Bank.

The wholesale price-based index declined by 0.05 percentage points against 0.31 per cent in the previous week.

During the week, the minerals group declined by a whopping 11.8 per cent due to prices of fire clay going down 19 per cent, iron ore 14 per cent, and chromite two per cent.

Prices of some food items like tea have declined. But the fuel index remained unchanged at its previous week’s level of 320.9.

However, manufactured items like imported edible oil were dearer by six per cent, benzene by 14 per cent, and enamelled copper wires by 9 per cent. – ET.

Continuing its southward journey, inflation slipped below 3% to 2.43% during the week ended February 28 from 3.03% a week earlier.

The WPI number for week-ended January 3 has been revised to 5.33% versus 5.24%.

Earlier a Reuters poll showed that the inflation rate was expected to have fallen to near seven-year lows at the end of February, following lower prices of manufactured goods and food articles.

The median forecast of 10 analysts was for a 2.34% rise in the wholesale price index in the 12 months to February 28, compared with a rise of 3.03% in the previous week.

Inflation was at 2.18% on June 8, 2002. Its lowest ever was 1.13% on Feb 2, 2002.

The RBI had forecast annual inflation to be below 3% by the end of the fiscal year on March 31, with some analysts predicting deflation by mid-2009. The RBI had recently cut its policy rates by 50 basis points to their lowest since they were introduced in 2000.

Axis Bank has also said in a note recently that India’s most commonly watched barometer for inflation is expected to fall to zero percent by end March 2009 following a cut in factory gate duties, aviation turbine fuel prices and a base effect. – Economic Times.

ndia’s wholesale price index rose 3.92 percent in the 12 months to Feb. 7, below the previous week’s annual rise of 4.39 percent, government data showed on Thursday.

It was below a median forecast in a Reuters poll of analysts of 4.01 percent.

The annual inflation rate was 4.98 percent during the corresponding week of the previous year.

Source – Reuters.

Inflation data was released yesterday , it is just .05 percent to go below 5 percent , it has come at 5.07 percent in 12 months to 24 January 2009,which is almost 0.60 percent down compared to previous week raised of 5.64 percent.

Having moved southward for a few weeks, inflation rose to 5.6% for the week ended January 10 from 5.24% a week earlier.
Earlier a Reuters poll predicted that the inflation rate was expected to have fallen to an 11-month low in the second week of 2009., triggered by a fall in the prices of manufactured goods.

The median forecast of 14 economists was for 5.05% rise in the wholesale price index in the 12 months to January 10, compared with 5.24% in the previous week.

Analysts said an eight-day truckers strike in early January would have pushed up the food price index and slowed the decline in the inflation rate.

Inflation raced into double digits in June last year after the government raised fuel prices. It peaked at 12.91% in early August, forcing the RBI to raise the repo rate to a seven-year high of 9%.

But since mid-October, the RBI has cut the repo rate by 350 basis points as the global financial crisis and high borrowing costs took a toll on economic growth.

Many analysts expect the inflation rate to fall below 2% by the end of March, sharply off the RBI’s target of around 7%. – ET

India’s wholesale price index rose 5.24 percent in the 12 months to Jan. 3, below the previous week’s annual rise of 5.91 percent, government data showed on Thursday.

It was marginally below a median forecast in a Reuters poll of analysts of 5.28 percent.

The annual inflation rate was 4.26 percent during the corresponding week of the previous year.

The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is released weekly. – Reuters

India’s inflation slowed to a 10- month low, giving policy makers room to implement further measures to stimulate economic growth without fanning prices. Wholesale prices rose 5.91 percent in the week to Dec. 27 from a year earlier after gaining 6.38 percent the previous week, the commerce ministry said in New Delhi today. Economists expected an increase of 6.14 percent. – Bloomberg.