Inflation for week ended Feb 17 stands at 6.05 per cent

Mumbai, Mar 2 (UNI) Inflation for week ending February 17 stands at 6.05 percent compared to 6.63 percent in the previous week, an RBI statement here said today.

Market analysts said the marginal drop in inflation can be attributed mainly to the cut in petrol and diesel prices and essential food products.

''Though wholesale prices-based inflation moderated quite a bit during the week, it was still way above the 5.5 per cent level desired by the Central Bank for this fiscal,'' a broker pointed out.

Besides, RBI had also announced measures to tighten money supply by increasing the short term lending rate, Repo and increasing the requirement for banks to keep cash with the central bank.

Major relief to inflation came from fuel, power, light and lubricant group as the index declined by 0.6 per cent due to the lower prices of petrol, which declined by four per cent.

Among other products in the group, prices of the high-speed diesel and light diesel oil declined by three per cent each and bitumen prices went down by two per cent. However, prices of furnace oil went up by nine per cent and naphtha by one per cent.

In manufactured items category, rice bran oil was cheaper by four percent, khandsari prices declined by two per cent. Other items like imported edible oil, sugar, cottonseed oil and oil cake prices went down by one per cent.

''However, the total impact of steps announced in the Budget to tame inflation can be known only in the coming weeks,'' a market analyst added.

UNI