MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL)
(a) & (b) :Inflation rate based on the Wholesale Price Index (WPI) during the last three months is listed below:
WPI based
Annual Inflation (%) 52 week (point to point) average(%)
05.08.2000 6.3 4.6
12.08.2000 6.3 4.7
19.08.2000 5.7 4.7
26.08.2000 6.2 4.8
02.09.2000 6.2 4.9
09.09.2000 5.7 4.9
16.09.2000 5.6 4.9
23.09.2000 6.1 5.0
30.09.2000 7.6 5.1
07.10.2000 7.0 5.2
14.10.2000 6.9 5.2
21.10.2000 6.8 5.3
28.10.2000 6.9 5.4
04.11.2000 7.3 5.4
(c) The rise in prices during 2000-01 is largely attributable to the increase in the administered prices of fuel products first in March 2000 and then again in September this year. This adjustment in the administered prices of energy products was absolutely necessary in view of the rising international prices of crude oil.
Inflation remained a little over 6 percent level till September this year, when a further hike in administered prices of kerosene, Diesel, petrol and LPG pushed up the inflation rate to over 7 percent. The latest rate of inflation for the week ended November 4, 2000 is 7.27%. The fuel group currently accounts for 70% of the inflation, but the stability in the prices of primary and manufactured products groups have had a sobering effect on the inflation rate.
(d) The Government keeps a close watch both on the demand and supply sides of inflation. While the situation on the supply side is closely monitored to ensure adequate availability of foodgrains and other items of mass consumption at reasonable prices, measures on the demand side include greater fiscal discipline, and regular monitoring of monetised deficit and broad money (M3) growth.
