 | « Back to article | Print this article |
Inflation declined marginally to 4.49 per cent for the week ended October 22 from 4.71 per cent in the previous week, mainly due to fall in prices of essential food items and industrial fuel although manufactured products became costlier.
Lower prices of vegetables, fruits, naphtha and cement arrested the continuous rise in inflation. However, the inflation was still lower than 7.44 per cent a year ago.
The repo and reverse repo rate hike by 0.25 per cent each from October 26, announced by Reserve Bank of India in the busy season credit policy, is also expected to check rise in price level.
Though inflation declined, the Wholesale Price Index remained unchanged at previous week's level of 197.7 points. WPI was at 189.2 points a year ago.
Although the inflation came down marginally, RBI has warned that full impact of domestic fuel price rise was yet to be felt.
During the week, world oil prices hovered around $60-$61 a barrel amid concern over shutdown of some refineries in the Gulf of Mexico due to Hurricane Wilma.