Thursday, February 05, 2009

Inflation down for week ended on Jan 24 at 5.07% vs 5.64%

Source : CNBC-TV18

The downward curve for inflation resumed after a two-week halt. Inflation for the week-ended January 24 inflation has come in at 5.07% versus 5.64% week-on-week (WoW).

Inflation has been declining except for the last two weeks when it went up — the recent truckers' strike was atrributed to the growth.

WPI for all commodities is down 0.2% and is at 230.1 WoW while manufactured products are down by 0.5% WoW.

Inflation for the week-ended November 29 has also been revised to 7.86% as against 8% (provisional).

The inflation number made headlines last year after it hit double digits. Post August though, the number has been steadily declining.

Gaurav Kapoor, Senior Economist, ABN AMRO Bank, said the higher inflation numbers that were seen during the past two weeks were because of the truckers strike. “This week’s headline inflation also had a strong base effect.”

Kapoor added that the recent fuel price cut will start to reflect from the next week when inflation for week ended January 31 comes out.