Inflation rate reduces to 5.27%

Inflation fell for the fourth consecutive week in a row in May, 2007. It fell to 5.27 percent for the week ended May 12, as against 5.44 percent last week. However, since the wholesale price index has gone up, the decline is due to higher base during the same period of last year. The official figure shows that the inflation was 4.63 percent during the corresponding period of the previous year.

The contradiction in the situation is also brought out by the fact that even as the inflation figures show a down turn, the official data shows that prices of several essential food products had gone up.