New Delhi, Jan 1: Inflation was pushed down further by the declining food and fuel prices for the eight week in succession to 6.8 pc for the week ended Dec 20. This trend may allow Reserve Bank of India (RBI) to effect more cuts in the key rates to further growth. Inflation, measured by movement in wholesale prices, came down by 0.23 percentage points from 6.61 per cent in the previous week. It was 3.74 per cent a year ago.
The major items of which the prices declined are tea, fruits and vegetables. The decline in Air Turbine Fuel price by 13 pc led the index of fuel items to come down by 0.5 pc. In the manufactured goods category, the imported edible oil, salt, cement, iron and steel became cheaper during the week. The items which became dearer during the week include maize, bazra, jowar, gur and newspaper.
The inflation for the week ended October 25 remain unchanged at 10.72 per cent. The decline in inflation will allow RBI to cut key policy rates which inturn could boost economic expansion.
OneIndia News (With inputs from Agencies)