Inflation dips a bit, touches 11.89 per cent

July 24th, 2008 - 8:12 pm ICT by ANI  

New Delhi, July 24 (ANI): Inflation rate dipped to 11.89-per cent for the week ended July 12. The inflation has softened somewhat with prices of many essential items either declining or remaining static.

The figure for the week ended July 12 is quite in line with the rate of inflation for the week ended July 5, that stood at 11.91 per cent, very marginally higher than the rate of 11.89 per cent reported a fortnight ago.

With early signs of stabilization in tandem with the marginal rationalization in the oil prices and the rupee bounce, it is expected that the Reserve Bank of India may choose to maintain status quo in the forthcoming credit policy on July 29.

The industry feels that RBI may choose to increase the Repo Rate by 25 basis points as oppose to an increase of 50 basis points that was being anticipated a couple of weeks earlier.

Last month, the RBI had raised short-term lending rates for banks repo rate — by 0.75 per cent in two instalments, while also increasing mandatory cash deposits of banks by 0.50 per cent in two phases to suck out excess liquidity.

The annual inflation has declined to 9.92 per cent in the primary articles group during the week ended July 5 compared to 10.84 per cent reported a week earlier. (ANI)

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