The Following is the statement of Department of Economic Affairs, Ministry of Finance on inflation issued here today:

"Inflation, on a week-on-week basis, has stabilised. The WPI moved up only marginally from 238.1 in the week ending June 28, 2008 to 238.7 in the week ending July 5, 2008; the rate of inflation for the week ending July 5, 2008 stands at 11.91 per cent, very marginally higher than the rate of 11.89 per cent reported last week.

In the 'primary articles' group, the annual point-to-point inflation has declined to 9.92 per cent, as compared to 10.84 per cent reported last week. Out of a total of 98 articles, 13 articles have shown a decline in prices as compared to June 28, 2008. These include rice, jowar, onion, brinjal, black pepper, okra, barley, groundnut seed, gram and banana. Another 57 articles have shown no increase in prices.

In the case of 'manufactured products', out of a total 320 commodities, a large number, 281 in all, have shown no increase in prices over the last week. In the case of 12 commodities there is a decline in prices. These commodities include salt, sugar, other iron and steel, lead ingots, zinc ingots, groundnut oil, deoiled cake, bran, liquid chlorine and caustic soda.

In the 'fuel power and light' group, there is a decline in prices of LPG (liquefied petroleum gas). There is an increase in prices of aviation turbine fuel, furnace oil, light diesel oil, and naphtha, which are driven by international crude prices.

The annual inflation rate for the group of 30 essential commodities has also declined to 5.74 from 5.98 per cent reported for the week ending June 28, 2008. Prices of essential commodities which include food grains, pulses, edible oils, vegetables, dairy products and some other commodities including kerosene, soap and safety matches have more or less stabilised."

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Inflation stabilisation: wholesale prices show marginal weekly rise while essential commodity inflation eased and many items remained stable. Inflation stabilisation is shown by a marginal weekly rise in the Wholesale Price Index with the weekly inflation rate nearly unchanged. Primary articles saw a decline in annual inflation with several items falling in price and most unchanged. Manufactured products were largely price-stable with few declines. Fuel showed mixed movements-LPG down, some petroleum products up due to international crude-and the 30 essential commodities basket recorded a reduced inflation rate with broadly stabilised prices.