The Hindu : Business : Inflation dips to 11.99 %

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Inflation dips to 11.99 %

Special Correspondent

NEW DELHI: For the first time in 12 weeks, the rate of inflation dipped below the 12 per cent-mark to 11.99 per cent for the week ended September 20 from 12.14 per cent in the previous week, mainly owing to a fall in the prices of certain food items even as some manufactured goods turned costlier.

Although the marginal fall in the wholesale price index-based (WPI) inflation rate is expected to bring some psychological relief to the Government for the time being, the general expectation is that the inflationary pressures are likely to persist and, therefore, there is unlikely to be any change in the interest and policy rates when the Reserve Bank of India (RBI) undertakes its mid-term review later this month.

During the week, prices of vegetables (potatoes and onions), cereals (rice, wheat and maize), imported and other edible oils and pulses (urad and gram) in the food articles group declined even as other items such as milk, sea fish, tea, spices, meat and eggs turned dearer. While the fuel and power category items saw no change in prices, most manufactured products turned costlier although the inflation index declined.

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