Inflation skids marginally to 3.7 per cent

A whopping 10 per cent fall in the price of vegetables coupled with cheaper other food articles, edible oils and non-food items pushed down inflation to an all time low of 3.7 per cent this fiscal.

The point-to-point wholesale price index (WPI) inflation fell to a 32-week low for the week ended August 23, from 3.71 per cent a week ago despite manufactured products becoming costlier and fuel prices remaining firm for the third consecutive week. The price level was 3.59 per cent in the comparable period in 2002-03, showing that the government is trying all out to keep the pace of price increase to previous year’s levels.

WPI, however, rose by 0.2 per cent to 173.6 points with prices of eggs, poultry chicken, barley, ragi, atta, copra, several textile products and machinery moving up. The index was 167.4 points in the year-ago period.

The final inflation and WPI stood at their respective provisional levels of 5.32 per cent and 174.1 points for the week ended June 28.