Inflation falls to 4.29%

Inflation fell to 4.29 per cent for the week ended February 25 from 4.34 per cent in the previous week, mainly due to decline in prices of essential food articles and non-food items.

Fall in the prices of fruits, vegetables, eggs, coarse cereals, sugar and edible oil brought some relief to the masses during the week.

However, building costs are set to rise as cement has become costlier. Electric motors also witnessed an upward pressure in prices with faster industrial activities.

The Wholesale Price Index was down by 0.1 per cent to 197 points although it was still higher than 188.9 points a year ago.

The overall trend of prices is in line with the expectations of Finance Ministry and Reserve Bank of an average inflation of about 5 per cent this fiscal.

During the week, international oil prices moved up to $62-63 a barrel after a suicide car bomb attack on a major Saudi oil facility coupled with the supply concerns in Nigeria, Iran and Iraq.

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