"The annual rate of inflation, based on monthly WPI, stood at 5.96 per cent (provisional) for the month of March, 2013 (over March, 2012) as compared to 6.84 per cent (provisional) for the previous month and 7.69 per cent during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 5.96 per cent, compared to a build up rate of 7.69 per cent in the corresponding period of the previous year," a government release has stated.
The index for ‘Non-Food Articles' group rose by 0.6 percent to 206.9 (provisional) from 205.6 (provisional) for the previous month due to higher prices of logs & timber (16%), soyabean (11%), raw rubber (7%), mesta and gingelly seed (5% each) and raw cotton, raw silk and raw jute (4% each). However, the prices of flower (18%), rape & mustard seed (9%), copra (coconut) and fodder (3% each) and groundnut seed and guar seed (1% each) declined.
The index for ‘Minerals' group rose by 2.1 percent to 357.4 (provisional) from 350.1 (provisional) for the previous month due to higher prices of zinc concentrate (5%), iron ore (4%), crude petroleum (2%) and copper ore (1%). However, the prices of magnesite (7%), sillimanite (6%), manganese ore and barytes (3% each) and chromite (1%) declined.
Declining inflation rate, may prompt the RBI to cut rates going forward in order to spur growth.