Inflation drops to 26-month low in January, at 6.55 per cent

The Reserve Bank of India had predicted overall inflation to be around 7 per cent by March-end. All eyes will now be on the central bank  which had said it will wait for prices to moderate before initiating rate cuts.

IANS

New Delhi,
Updated Feb 14, 2012 6:42 PM IST

Inflation drops to 26-month low in January, at 6.55 per cent

India's annual inflation slipped to 6.55 per cent in January, lower than what was expected and at its lowest in over two years, bringing relief to the policymakers and raising hopes of a rate cut by the Reserve Bank of India (RBI).

Inflation, based on wholesale prices, was logged at 7.47 per cent in December.

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The central bank had predicted overall inflation to be around 7 per cent by March-end. RBI had said that it was willing to wait until inflation came firmly under control before initiating rate cuts.

The primary articles index rose 2.25 per cent, while that for food registered a negative growth of - 0.52 per cent in the month under review, according to data released by the ministry of commerce and industry on Thursday.

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Manufactured products, the biggest constituent in the wholesale price index, rose by 6.49 per cent, while inflation for fuel increased 14.21 per cent.

The figures for November were revised upwards to 9.46 per cent, compared to the provisional figure of 9.11 per cent.

Published on: Feb 14, 2012 1:41 PM IST

Inflation drops to 26-month low in January, at 6.55 per cent

The Reserve Bank of India had predicted overall inflation to be around 7 per cent by March-end. All eyes will now be on the central bank  which had said it will wait for prices to moderate before initiating rate cuts.

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Inflation drops to 26-month low in January, at 6.55 per cent

The Reserve Bank of India had predicted overall inflation to be around 7 per cent by March-end. All eyes will now be on the central bank&nbsp; which had said it will wait for prices to moderate before initiating rate cuts.

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TOP STORIES

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The Reserve Bank of India had predicted overall inflation to be around 7 per cent by March-end. All eyes will now be on the central bank which had said it will wait for prices to moderate before initiating rate cuts.