Inflation further dips to 5.06 per cent

New Delhi, Jun 1: The annual rate of inflation further softened to 5.06 per cent for the week ended May 19 from 5.27 per cent a week ago, due to a statistical base effect and decline in some food product prices.

The headline inflation rate was 5.05 per cent during the corresponding week of the previous year, according to official data issued here today.

Finance Minister P Chidambaram has said high economic growth might put pressure on inflation, especially prices of essential commodities, if supply did not match the growing demand.

''India aims to bring down inflation to 4.0-4.5 per cent.

Inflation had come down in the recent weeks and the government was keeping a watch,'' he added.

UNI