Inflation eases to four-month low of 5.4%

[ushma87star]

The country’s inflation rate fell for the third consecutive week to over a four-month low of 5.44 per cent for the week ended May 5 as some food items like moong, sugar, flour and spices, coupled with oilseeds, turned cheaper. The wholesale prices-based inflation had stood at 5.66 per cent in the previous week and 4.37 per cent in the corresponding week last year.

Earlier today, Prime Minister Manmohan Singh exuded confidence that the Government would further bring down inflation to 5 per cent in a couple of months. Speaking on the sidelines of a Rashtrapati Bhavan function, he said, “The inflation rate is 5.5 per cent now and we will bring it down to the level of 5 per cent. I hope we will succeed on this front in the next couple of months.” He added, “There is concern about prices. We will moderate it. It is already coming down.” The continuous decline in inflation gives the RBI an ideal opportunity to reverse the monetary tightening measures that it has been implementing for the last year.
The WPI for the week rose by 0.2 per cent to 211.4 points from 210.9 points in the previous week. The revised figure for WPI for the week ended March 10 was 209.4 compared to the provisional figure of 209.3. The revised inflation stood at 6.51 per cent for the same week.

 

[smith02]

I feel this is only a stop gap situation as the markets being so unpredictable for the last few years it is virtually impossible to exercise control over the rate of inflation. It is welcome if the rate has been brought under control now but one can never say when it will raise, making the markets fall into a slide.

 

[ankitjain]

hm finally the inflation is slowing down s the prices of crude are rising in the world markets!!.. hmm.
interesting!!