Inflation drops to 3.01%

Inflation drops to 3.01%

New Delhi: Inflation declined to 3.01% for the week ended 10 November, against 3.11% in the previous week, mainly due to fall in prices of some food articles.

The wholesale price based inflation stood at 5.39% a year ago.

The food articles group showed a fall of 0.3% due to lower prices of urad (6%), fruits and vegetables, and condiments and spices (1% each), according to official data released here Thursday.

There was a marginal increase in the prices of cement, and manufactured food products such as bran (6%), rice bran oil (3%) and sooji (1%). However, prices of groundnut oil fell by 2%.

Although the prices of crude oil have almost touched $100 a barrel, it did not impact the inflation rate as the government has not passed on the burden to consumers.

Prices of fuel power light and lubricant group, which has a weight of 14.23% in the wholesale price index, remained unchanged at its previous week’s level.

Finance Minister P Chidambaram, while speaking at a function, said: “It is important to factor in price increase and adjust our policies so that inflation doesn’t get out of hand."