Inflation slides further to 4.80 per cent

New Delhi, June 15: The headline inflation further dipped to 4.80 per cent for the week ended June 2 from 4.85 per cent a week ago on account of decline in food and energy prices.

The annual inflation rate was 4.88 per cent during the corresponding week of the previous year, an official statement said here today.

Last week, for the first time in eight months the inflation rate fell below the five per cent level at 4.85 per cent due to cheaper food articles.

The Reserve Bank of India aims to keep inflation close to five per cent this fiscal, and bring it down to 4.0-4.5 per cent over the medium term.

However, increasing demand resulting from a 9.4 per cent economic growth during 2006-07 could still result in price rise if the supply side does not grow in proportion, Finance Minister P Chidambaram said earlier.

UNI