Inflation dips to 5.2%

Inflation continued to fall for the fifth consecutive week. It touched 5.2 per cent for the week ending 28 May 2005, compared with 5.38 per cent in the previous week.

Wholesale price index (WPI)-based inflation, a measure of the general price level in the economy, fell mainly because of the high base effect. Inflation was 5.61 per cent in the corresponding week last year and had continued to rise till August 2004, when it crossed 8 per cent.

"Inflation in manufactured goods is still high at 5.2 per cent. So, any decrease in the overall level is because of a decline in inflation in energy and primary articles," said Saumtira Chaudhuri, economic advisor, ICRA and member of the Prime Minister's economic advisory council.

Energy inflation was down from 11.1 per cent last week to 10.7 per cent this week.