Inflation eases to 3.65%

Lower prices of food articles like fruits and vegetables, pulses and some manufactured items pushed inflation down to 3.65 per cent for the week ended December 8. The wholesale price based index stood at 3.75 per cent in the previous week. Although the index is well below RBI projection of close to 5 per cent for the current fiscal, inflation stood at 5.63 per cent in the corresponding week a year ago. Though the prices of food items were lower for the week, Finance Minister P Chidambaram remained concerned over the inflationary pressure over edible goods on global factors. He had said, the prices of food (articles) are slightly higher because of the mismatch between supply and demand. During the week prices of fruits and vegetables declined by one per cent, while bajra and urad got cheaper by two per cent. At the same time prices of gram also slipped by one per cent. However, as per the latest monthly economic report released by Finance Ministry, rising global prices of metals, crude oil and agricultural commodities are posing new threats to the low level of inflation in India that is presently hovering below four per cent level. International coal prices have jumped to about $83 a metric tonne in November from $53.19 a metric tonne in January-March quarter this year, while crude oil prices stood at $91.34 a barrel against $57.23 a year in first quarter this year.