New Delhi: India's annual rate of inflation fell to 0.18 per cent for the week ended April 4, from 0.26 per cent the week before, official data showed on Thursday.
Inflation rate had declined for eight consecutive weeks to 0.27 per cent for the week ended March 14, but marginally rose to 0.31 per cent for the week ended March 21. It has continued to decline since then.
Between April 4 and March 28, the wholesale price index rose by 0.4 per cent to 228.2 (provisional) from 227.3 (provisional) the week before, data released by the Commerce and Industry Ministry showed.
Among the three main commodity groups, the index for manufactured products and primary articles rose 0.1 per cent and 1.1 per cent.
The index for fuel, power, light and lubricants rose 0.5 per cent to 322.6 (provisional) from 320.9 (provisional) for the previous week due to higher prices of aviation turbine fuel (12 per cent), naphtha (8 per cent), light diesel oil (3 per cent) and bitumen (2 per cent).
However, the prices of furnace oil declined 1 per cent. The index for this group for the previous week was at 320.9 (provisional).
Inflation rate does not necessarily mean that prices have fallen, but that the rate of rise in prices has come down, not the actual prices.
Economists have already warned of a deflation - 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.
Lower demand during deflation often leads to a rise in unemployment.
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