Inflation dips to 7.02%

Moderation in global prices of crude coupled with cheaper primary products led to a fall in inflation for the second consecutive week. The figure is 7.02 per cent for the week ending December 4.

Point-to-point wholesale price index (WPI) inflation fell by 0.28 per cent from the previous week's level of 7.3 per cent on account of an 8 per cent fall in vegetable prices. Inflation stood at 5.56 per cent in the corresponding period last year.

WPI fell by 0.3 per cent to 189.1 points even as the index of heavy-weighted manufactured products' group remained unchanged at the previous week's level.

Senior Crisil economist DK Joshi said inflation was likely to continue its downward trend until the end of January if the international crude prices moderated further or continued to sustain present levels.

"Unless there is a negative shock on the oil front, inflation would continue to moderate and reach the levels of around 6.5 per cent as projected by the Reserve Bank of India (RBI)," he said.

Final inflation and WPI, however, stood unchanged at their provisional levels of 7.1 per cent and 188.5 points during the week ending October nine.

The index of primary articles' group was down by over one per cent to 187.8 points due to an all-round decline in the prices of food and non-food items. The index was 181.5 points in the corresponding period a year ago.

The food articles' group index fell by 1.3 per cent to 187.8 points.

The index of non-food articles' group fell marginally by 0.6 per cent to 181.1 points.

The fall in the fuels' group index was in line with the global markets since oil prices moved in a range of $42-43 a barrel during the week under review.

The fuel, power, light and lubricants' group index was down by 0.2 per cent to 289.2 points. The index was 255.9 points in the same period the previous year. The index of manufactured products' group remained firm at the previous week's level of 167.2 points.