Inflation in January slips to 6.55 percent

February 14th, 2012 - 2:08 pm ICT by IANS  

New Delhi, Feb 14 (IANS) India’s annual inflation slipped to 6.55 percent in January, lower than what was expected and at its slowest in 26 months, bringing relief to the policymakers and raising hopes of a rate cut by the Reserve Bank of India (RBI) sooner.

Inflation, based on wholesale prices, was logged at 7.47 percent in January.

The RBI had predicted overall inflation to be around 7 percent by March-end. The central bank had said that it was willing to wait until inflation came firmly under control before initiating rate cuts.

The primary articles index rose 2.25 percent, while that for food registered a negative growth of - 0.52 percent in the month under review, according to data released by the ministry of commerce and industry Thursday.

Manufactured products, the biggest constituent in the wholesale price index, rose by 6.49 percent, while inflation for fuel increased 14.21 percent.

The figures for November were revised upwards to 9.46 percent, compared to the provisional figure of 9.11 percent.

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