Based on the wholesale price index the annual rate of inflation declined further, hitting a 30-year low at 0.27 percent (provisional) for the week ended 14 March. When compared with Inflation that was 0.44 percent during the week ended March 7, the decline seemed to be of 0.17 percentage point, despite price hike of some essential commodities like cereals and vegetables during the period.

 

With the increasing price of fruit and vegetables, rice, some varieties of pulses, barley, bajra, and maize, the index for primary food articles rose by 0.1 per cent. The food index also rose in the category of manufactured items because maida, sooji, oil cakes, imported edible oil, gur, and cottonseed oil became expensive.

 

The constant decline in inflation has increased the hope that the RBI would further ease money supply in order to boost economic growth. The decline in inflation to such a level is something that was witnessed only in the 1977-78.