Inflation eases to 8.90 pc

Inflation has further declined to 8.90 per cent for the week, a development that may prompt the Reserve Bank to inject more liquidity into the system to overcome the cash crunch.

Inflation has further declined to 8.90 per cent for the week ended November 8 from 8.98 per cent a week ago, a development that may prompt the Reserve Bank to inject more liquidity into the system to overcome the cash crunch.

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The inflation, measured by movement in wholesale prices, has come down by 0.08 percentage points mainly on account of declining prices of fuel items, triggered by fall in international crude prices.

While the prices of light diesel oil (LDO) dipped sharply by 11 per cent during the week, in case of furnace oil and aviation fuel they came down by nine per cent and five per cent, respectively.

The inflation rate was 3.20 per cent a year ago.