Inflation drops to 5.03 pc

NEW DELHI, Jan 17: Continuing its fall for the eighth consecutive week, the inflation rate saw a moderate decline of 0.31 per cent to touch a 54-week low of 5.03 per cent on January 2 on account of falling vegetables prices. It was 5.34 per cent the previous week.

This is the lowest since December 27, 1997, when it registered 5.02 per cent. In the previous week, it witnessed the sharpest fall of 0.87 per cent in the current fiscal year when it came down to 5.34 per cent from 6.21 per cent in the previous week. It had gone below six per cent mark after a gap of 36 weeks. However, the inflation rate was slightly higher at 5.63 per cent during the corresponding week last year (January 3). The recent decline in the inflation rate was caused by falling prices of tea, fruits, vegetables, raw rubber, raw silk, copra, zinc and transformers. But the prices of maize, barley, fish and switch gears went up during the week under review.