Inflation eases to 10.68 pc after four months
Inflation eased below the 11 per cent mark after four months to 10.68 per cent, thanks to lower prices of fuel and manufactured goods, which might goad the Reserve Bank to cut key rates further.business Updated: Oct 30, 2008 13:09 IST
Inflation eased below the 11 per cent mark after four months to 10.68 per cent, thanks to lower prices of fuel and manufactured goods, which might goad the Reserve Bank to cut key rates further.
The wholesale prices-based inflation slipped 0.39 per cent in the week ended October 18, while it stood at 3.11 per cent in the year-ago period.
Inflation, which was 8.75 per cent as of June first week, suddenly jumped to two-digits after the government hiked the administered prices of petrol, diesel and LPG.
The fall in the rate of rising prices might prompt RBI to further cut cash reserve ratio or repo rate, which might result in lower borrowing costs in the economy and spur spending.
During the week, prices of food articles like pulses fruits and wheat declined. However, prices of vegetables rose by 2.3 per cent and spices by half per cent.
Declining prices of crude oil in the international markets led to fall in prices of furnace oil, which was cheaper by six per cent while prices of light diesel oil declined by three per cent.
Besides, in the manufactured product category, prices of iron and steel declined by half per cent and zinc prices slipped by 11 per cent.