Saturday, May 9, 2009

Inflationary Pressures Non-Existent Here Approaching Weeks - May 09, 2009

By beating the general expectations, India''s wholesale price index continues to rise. The inflation rate has also rallied through April to stood at 0.7 per cent for the week ended April 25 after hitting a low of 0.18 per cent for the week ended April 4. The inflation rate declined for the eight consecutive week to stood at 0.27% for the week ended March 14.

"Inflationary pressures have waned around Asia amid a slowing economy. However, food prices in India have remained solid because of the government''s agricultural price guarantees. Despite cooling demand, food prices rose mildly during the week ended April 25 while energy prices were steady," said Sherman Chan, economist at Moody''s Economy.com.

Chan believes that in the coming weeks the overall inflationary pressures will likely remain almost nonexistent, with a considerable chance of the WPI soon declining year on year.

No comments: