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Economic Survey Report 2007-2008: Inflation
May, 26th 2008

The Economic Survey Report of 2007-2008, tabled in the parliament today, 28th February 2008, indicated an inflation rate of 4.1% for the current fiscal year 2007-2008. This is much lower compared to the inflation rate of 5.6% inflation of the last fiscal year.

The Economic Survey Report said that inflation in India has been led mainly by primary non-food items. Prime contributors to inflation in the fiscal year 2007-2008 are the fuel and power group. On the other hand there has been a decline in the inflation rate of investment goods from 5.6% to 4.3%. The Economic Survey Report of 2007-2008 has indicated that the investment climate in India is encouraging.

While prices have been falling since March 2007, there has been some rise in prices in the last couple of weeks. Increase in the prices of coal and crude-oil have caused general price levels to rise. This was followed by the rise in the process of diesel and petrol.

Inflation has been a concern area for the Indian economy. The decline in inflation is being considered as a positive sign for the economy. The Finance Minister, however, has stated today that there is no need to ensure non-inflationary growth in India at the moment.

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