Inflation down at 6.61 per cent | business | Hindustan Times
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Inflation down at 6.61 per cent

business Updated: Dec 26, 2008 17:16 IST

Inflation almost halved to 6.61 per cent for the week ended December 13 from the peak of 12.91 four months ago as manufactured goods and some food items turned cheaper.

Wholesale prices-based inflation came down for the seventh consecutive week to a nine-month low due to the cascading effect of cuts in fuel prices, providing more space to the RBI for further cuts in key policy rates.

Inflation fell by 0.23 percentage points from 6.84 per cent a week ago. It was 3.84 per cent a year ago during the corresponding period.

The rate of price rise was lower than this at 6.21 per cent during the week ended March 1 this year. It touched the peak of 12.91 per cent during the week ended August 9.

Manufactured products became cheaper during the week with a fall in prices of groundnut oil, sugar, cement and certain textile items like cotton yarn.

Prices of cement too fell by 1.5 per cent, pipes and tubes by five per cent. Steel wires, zinc, and steel ingots too became cheaper.

The prices of other items that became cheaper during the week include fruit and vegetables, tea, cereals, spices, sea fish, wheat and bajra.

However, despite falling crude prices, the fuel index remained unchanged.

Imported edible oil, however, turned dearer by four per cent.