Inflation drops to 5.44 percent

The annual rate of inflation on the wholesale price index (WPI) has come down to 5.44 per cent for the week ending May 5 as against previous weeks 5.66 per cent.

New Delhi, May 18 : The annual rate of inflation on the wholesale price index (WPI) has come down to 5.44 per cent for the week ending May 5 as against previous week's 5.66 per cent.

According to official figures issued at New Delhi, the annual rate of inflation, calculated on a point-to-point basis, stood at 4.37 percent during the corresponding week of the previous year.

During the week, prices of sooji, khandsari and oil cakes, sugar, atta, moong, barley, condiments and spices, and niger seed declined while imported edible oil and salt got dearer.

There was a marginal rise in prices of cement as well followed by Aviation Turbine Fuel (ATF) and naphtha.

Yesterday, Union Finance Minister P Chidambaram said that the Centre is taking all measures to curb inflation.

"I am not happy with inflation... We are willing to take further fiscal steps if members so suggest," Chidambaram told Lok Sabha while replying on a debate on price rise.

He said the government has already taken various steps including ban on export of pulses and milk products, besides reducing customs duty on edible oil in order to bring down the prices of essential commodities.

Chidambaram said the government was aiming to bring down inflation below 5 per cent and later between 4-4.5 per cent, the tolerance level of the people and the Reserve Bank of India.

ANI