Latest forecasts promise good news on the inflation front. India’s wholesale price index (WPI)- based inflation is projected to come down to 9.6 per cent in the second quarter ending September 2010, the Centre for Monitoring Indian Economy (CMIE) said in its monthly review here.
WPI inflation in the June 2010 quarter was 10.6 per cent, compared to barely 0.5 per cent in the same period a year-ago.
The decline is projected to continue in the subsequent two quarters too, to 8.1 per cent and 6.5 per cent in the quarter ending December 2010 and March 2011, respectively, CMIE said.
The decline will be partly brought about by a high base in the second-half of the preceding fiscal year. The other factors that are expected to keep inflation down include an expected surge in the 2010 kharif crop production and an increase in sugar output.