Feb 27, 2009

Inflation below 5%

12 Feb 2009 | 12:22 Inflation below 5%

Inflation based on the wholesale price index (WPI) rose 4.39% in the year through 31 January 2009, much lower than previous week's annual rise of 5.07%, data released by the government today, 12 February 2009, showed.

Reduction in auto fuel prices helped bring down WPI. The government on 28 January 2009 announced cut in the prices of petrol, diesel and LPG. Petrol prices were cut by Rs 5 per litre and diesel prices by Rs 2 a litre. LPG price was cut by Rs 25 per cylinder.

The Reserve Bank of India (RBI) said in its monetary policy review on 27 January 2009 it expected annual inflation to be below 3% by the end of the 2008/09 fiscal year in March 2009.