Thursday, March 5, 2009

Inflation fell 7 year low to 3.03%

Date : Mar-05-2009 15:00

Inflation slipped seven year low to 3.03 percent for the week ended February 21 as against 3.36 percent reported in the previous week. This fall was mainly due to lower prices of food items such as fruits, vegetables, tea and some manufactured items.

The annual inflation was at 3.36% in the week before and at 5.69% in the corresponding week last year.

Inflation data was released a day after RBI reduced key policy rates by 50 basis points signalling banks to cut down interest rates. The Central bank yesterday has cut the interest rates for the fifth time since October in order to revive the economy. The Repo rate is at an all time low of 5%, reverse repo is at 3.5% as of now.

No comments: