Inflation at -1.58 percent but prices still rise

As per latest official data, annual inflation based on Wholesale Price Index stood at - 1.58% for the week ended July 25, 2009, while it was at 12.53% a year ago. The latest inflation number shows a steeper fall in annual inflation recorded at the end of the previous week at -1.54%.

Government data showed on Thursday that price level for all commodities stayed below zero for the eighth straight week, but prices of

food items continued to surge, signaling political trouble for the Centre and three states preparing for local elections in a few months. Maharashtra is facing assembly polls in October-November, while Haryana that is supposed to go to the polls next year is likely to advance it to this year-end. Jharkhand, now under the President’s rule, is also likely to go to polls later this year.