Declining food and fuel prices pushed inflation down for the eighth week in succession to 6.38 per cent for the week ended December 20, a trend that may allow RBI to effect more cuts in key rates to further growth.
Inflation, measured by movement in wholesale prices, came down by 0.23 percentage points from 6.61 per cent the previous week. It was 3.74 per cent a year ago.
Among the major items, prices of tea, fruits and vegetables declined during the period under review.
The index of fuel items came down by 0.5 percentage point on account of decline in prices of aviation turbine fuel (ATF) by 13 percentage point, bitumen by 7 percentage point, light diesel oil by 6 percentage point and furnace oil by 3 percentage point.
The prices of these fuel items, which are not decided by the government, declined on account of softening of crude oil prices in the international market.
In the manufactured goods category, the imported edible oil, salt, cement, iron and steel became cheaper during the week.
Comments