By IANS,
New Delhi : India’s annual rate of inflation fell marginally to 0.26 percent for the week ended March 28, from 0.31 percent the week before, official data showed Thursday.
The inflation had declined for eight consecutive weeks to 0.27 percent for the week ended March 14, but marginally rose to 0.31 percent for the week ended March 21.
Between March 21-28, the index remained unchanged at its previous week’s level of 227.3 (provisional), data released by the commerce and industry ministry showed.
Among the three main commodity groups, the index for manufactured products rose 0.2 percent, while that for primary articles declined 0.3 percent.
The index for fuel, power, light and lubricants remained unchanged at its previous week’s level of 320.9 (provisional).
Economists, who have already warned of a deflation in the Indian economy, contend lower inflation rate does not necessarily mean that prices have fallen. Lower inflation rate only means the rate of rise in prices has come down, not the actual prices.
Deflation is a decline in the general price level. It is caused by factors such as low money supply and credit, and a curb in spending by households, industry or government. The lower demand during deflation often leads to a rise in unemployment.