Inflation eases to 4.61%

NEW DELHI: The headline inflation rate has eased to 4.61%, for the week ended July 29 from 4.67% in the previous week. Finance minister P Chidambaram also exuded confidence that the softer inflation trend would continue.

“Given the current market condition and the brisk pace of economic growth, headline inflation is expected to remain at about 4.5%,” the minister told Parliament during a debate on Friday. He, however, said prices of wheat, pulses and sugar were a matter of concern and steps were being taken to ensure their availability at affordable prices.

The inflation rate was 4.16% in the corresponding week a year ago. While the price line for primary artricles moved downward by 0.1%, the index for food articles declined by 0.2%. This was due to lower prices of urad, and milk. But prices rose for eggs, condiments and spices.

The price index for manufactured articles however rose by 0.1% over that of previous week. Within manufactured products, the index for food products group rose by 0.2%due to higher prices of processed tea, cotton seed oil, suji, imported edible oil, atta, gur, maida, groundnut oil and coconut oil.