After creeping down to single digit, India’s annual rate of inflation fell further to 8.90 per cent for the week ended Nov 8. According to official reports, last week the annual inflation rate stood at 8.98 per cent from previous rate of 10.72 per cent. A decline in the official wholesale price index (WPI) by 0.9 per cent has resulted in this week's reduction of inflation rate, informed commerce and industry ministry. A part from it, the indexes of fuels and manufactured goods have also declined by 0.9 and 0.2 per cent respectively.

 

According to the statistics of the commerce ministry, the primary articles which own considerable position in the general index rose by 0.4 per cent during the week under review. It is to be noted that last week, the primary articles index had declined by the same 0.4 per cent. Manufactured goods index had declined by 0.7 percent while that of fuel fell by 3.4 per cent in the previous week. Last year at the same week of the month, India's inflation rate was recorded at 3.20 per cent.

 

The further decline in the annual inflation rate is likely to bring cheer to UPA-led central government as assembly polls have already kicked off in some of the states. With the decline in the inflation rates, the ruling party is supposed to gain upper hand in the assembly elections. The central government has been under much pressure and criticism due to price hike. As a result, the recent decline in inflation will create some breathing space for the government.