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Economic Survey indicates price stability,
inflation at 7%

ECONOMIC SURVEY

The Economic Survey 2000-2001 indicated that stability in prices of primary and manufactured products had a sobering effect on the annual inflation rate which was likely to end the current fiscal at about 7 per cent.

It said despite a sharp increase in administered prices of energy products, influenced mainly by international crude oil price escalation, rise in inflation was restricted as

prices of manufactured articles continued to have a 3-4 per cent growth.

The manufactured articles group encompasses

nearly two-thirds of all traded commodities and at present contributes 29 per cent to inflation.

Since the sector to a large extent depends on the primary sector for raw materials, low inflation in the primary sector producing raw materials also contributed in keeping the inflation rate at a moderate level.

Fuel, power, light and lubricants sub sector contributed most to annual inflation. Price growth in the group was 29.6 per cent and their contribution to the general price rise was 58.6 per cent.

The share of primary articles in inflation had gone up to 11.8 per cent in 2000-01 from 4.8 per cent in 1999-2000 due to rise in prices of pulses, fruits and vegetables.

However the share of foodgrains in inflation had hadgone down significantly to (-)1.5 per cent from 15.3 per cent in the last fiscal.

PTI

Economic Survey 2000-2001
Budget 2001
Money

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