Inflation declines to 3.96%

Inflation for the week ended March 25 fell marginally to 3.96 per cent compared with 4.06 per cent for the previous week mainly on account of fall in the prices of manufactured goods.

The wholesale price rise was down to 3.96 per cent despite increase in prices of essential items like vegetables, wheat and fish, according to data released by the government today.

"In spite of significant economic growth in the current year, the inflation for manufactured goods remains quite soft. This augurs well for the economy," said Saumitra Chaudhary, economic advisor, ICRA. The prices of fuel, however, remain unchanged.

Inflation was 5.10 per cent during the corresponding week of the previous year.

The wholesale price index (WPI) declined by 0.2 per cent to 197 points and stood at 189.5 points for the same period last year.

The government has also revised the inflation figure for the week ended January 28 to 4.04 per cent from the provisional estimate of 4.30 per cent while the WPI stands corrected at 195.9 points against the earlier estimate of 196.4 points.