ID :
36434
Fri, 12/19/2008 - 06:14
Auther :
Shortlink :
http://m.oananews.org//node/36434
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Inflation in India at nine month low on lower fuel prices
New Delhi, Dec 18 (PTI) Declining fuel prices pushed down
inflation in India sharply for the sixth consecutive week to
6.84 percent, the lowest in nine months, a development that
could prompt the Reserve Bank to take more bold steps to boost
economic growth.
Inflation dipped by 1.16 percentage points from 8 percent
in the previous week, primarily on account of reduction
in prices of petrol and diesel announced by the government in
the first week of the month.
It was 6.21 percent in the week ended March 1, 2008. The
rate during the corresponding period last year was 3.84
percent.
The government reduced the per litre prices of petrol and
diesel by Rs 5 and Rs 2 respectively with effect from December
6 in the wake of falling prices of crude oil in the
international market.
Also, the prices of those items which are not decided by
the government came down during the week. The index of 'fuel,
power, light and lubricants' fell by 3.7 per cent, as prices
of petrol, jet fuel (Aviation Turbine Fuel), naphtha and
furnace oil declined by 10 per cent, 7 per cent, 23 per cent
and 15 per cent respectively.
In addition to fuel items, the prices of fruits and
vegetables, various pulses steel, pig iron and certain metals
too declined during the week.
RBI has taken a host of measures releasing as much as
Rs 3,00,000 crore to fuel growth and with the inflation coming
down further, it might take more steps to boost industrial
output.
Apart from fruits and vegetables, prices of imported
edible oil, rice bran oil and coconut oil also declined.
The index for chemicals and chemical products group
declined by 0.6 percent and transport equipment and parts
declined by 0.5 percent during the week.
However, the prices of non-food articles group rose by
0.1 per cent due to higher prices of fodder, groundnut seed,
gingelly seed and raw cotton.
In the manufactured products category, atta (by 2
percent), groundnut oil and ghee (by one percent) and cotton
seed oil became dearer during the week.
The inflation data of the week does not capture the
impact of four per cent excise cut across the board announced
last week on December 7 as a part of the stimulus package to
revive the slowing Indian economy.
The inflation for the week ended October 11 stood at
11.30 per cent, up from the provisional estimates of 11.07 per
cent.
inflation in India sharply for the sixth consecutive week to
6.84 percent, the lowest in nine months, a development that
could prompt the Reserve Bank to take more bold steps to boost
economic growth.
Inflation dipped by 1.16 percentage points from 8 percent
in the previous week, primarily on account of reduction
in prices of petrol and diesel announced by the government in
the first week of the month.
It was 6.21 percent in the week ended March 1, 2008. The
rate during the corresponding period last year was 3.84
percent.
The government reduced the per litre prices of petrol and
diesel by Rs 5 and Rs 2 respectively with effect from December
6 in the wake of falling prices of crude oil in the
international market.
Also, the prices of those items which are not decided by
the government came down during the week. The index of 'fuel,
power, light and lubricants' fell by 3.7 per cent, as prices
of petrol, jet fuel (Aviation Turbine Fuel), naphtha and
furnace oil declined by 10 per cent, 7 per cent, 23 per cent
and 15 per cent respectively.
In addition to fuel items, the prices of fruits and
vegetables, various pulses steel, pig iron and certain metals
too declined during the week.
RBI has taken a host of measures releasing as much as
Rs 3,00,000 crore to fuel growth and with the inflation coming
down further, it might take more steps to boost industrial
output.
Apart from fruits and vegetables, prices of imported
edible oil, rice bran oil and coconut oil also declined.
The index for chemicals and chemical products group
declined by 0.6 percent and transport equipment and parts
declined by 0.5 percent during the week.
However, the prices of non-food articles group rose by
0.1 per cent due to higher prices of fodder, groundnut seed,
gingelly seed and raw cotton.
In the manufactured products category, atta (by 2
percent), groundnut oil and ghee (by one percent) and cotton
seed oil became dearer during the week.
The inflation data of the week does not capture the
impact of four per cent excise cut across the board announced
last week on December 7 as a part of the stimulus package to
revive the slowing Indian economy.
The inflation for the week ended October 11 stood at
11.30 per cent, up from the provisional estimates of 11.07 per
cent.
