Inflation drops to 6.84 pc from 8 pc

Mumbai, Dec 18: Giving some reasons to cheer for consumers the Headline Inflation fell further to 6.84 per cent during the week ended Dec 6 from 8 per cent a week earlier. A Reuters poll earlier showed that India's annual inflation rate was expected to fall sharply to a nine-month low in the first week of Dec after a cut in the domestic fuel prices.

Petrol prices dropped to 10 per cent and diesel prices are down by 6 per cent. Meanwhile Naphtha prices fall by 23 per cent.

Inflation had surged into double digits in early June after an increase in state-set retail fuel prices, and peaked at 12.91 per cent on Aug 2, the highest reading since annual numbers in the current data series became available in April 1995.

The central bank said recently that it expects inflation to be significantly lower than its March-end target of 7 per cent.

OneIndia News (With inputs from Agencies)