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Home  » Business » Govt expects inflation to decline to 9.5-10% by Dec

Govt expects inflation to decline to 9.5-10% by Dec

Source: PTI
October 23, 2008 14:20 IST
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Government said on Thursday that inflation was expected to ease to 9.5-10 per cent by the end of this year, representing a significant decline from close to 13 per cent recorded a couple of months ago.

"Inflation is expected to come down to 9.5 per cent to 10 per cent by December end", Department of Economic Affairs Secretary Ashok Chawla told reporters.

The statement came on a day when the official data reported a decline in the rate of price rise for the fourth consecutive week.

Inflation declined to 11.07 per cent for the week ended October 11, from 11.44 per cent in the previous week.

However, inflation for the corresponding week a year ago was at 3.07 per cent, which was significantly lower.

Inflation, measured by movement in the wholesale price index, has been declining since it touched a high of 12.91 per cent during August.

Commenting on the inflation figures released today, the finance ministry statement said, 'Out of a total of 98 articles (in the primary articles group), 28 articles have shown a decline in prices in the current week as compared with October 4.'

The items, which have shown a decline in prices, include jowar, bajra, barley, urad, moong, groundnut, sunflower, eggs, ginger and iron ore, the statement said adding there was no increase in prices of 47 articles.

In the fuel and power category, the prices of furnace oil declined, while 17 other commodities showed no change in prices. "Lubricants was the only commodity which witnessed an increase in prices," it said.

In the manufactured product category, 288 of 318 commodities have shown no increase in prices. Only 13 products became expensive, which include sugar, ghee, cycle tyres and tubes.

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