Question : INFLATION RATE



(a) the rate of inflation registered during the last six months;

(b) the reasons for rise or fall in inflation rate during the same period;

(c) whether the Government has proposals to change the existing system for assessment of the inflation rate;

(d) if so, the details thereof;

(e) whether the Government has taken any decision to announce the inflation rate on monthly basis instead of weekly; and

(f) if so, the details thereof and reasons therefor?

Answer given by the minister


MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)

(a) The following are the annual rates of inflation, year-on-year basis, registered during the last six months based on Wholesale Price Index (WPI) with base 1993-94.

May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09
1.38 -1.01 -0.67 -0.17 0.50 1.34

(b)The reasons for negative inflation during June 2009 to August, 2009 was decrease in the domestic prices of fuel group and non-food commodities (metal, etc.) and effect of higher statistical base of Wholesale Price Index during the corresponding months of last year.

(c)&(d) There is no proposal to change the existing system for the assessment of inflation rate.

(e)&(f) Government has decided to release WPI inflation on a monthly basis to address the issue of low response rate in the manufactured products included in the WPI which has weight of 63.75 per cent.