Inflation Drops To Three-Month Low

Finance Minister P Chidambaram''s plan to curb prices in the economy may be finally working. Inflation dropped to a three month low at the end of March with part of the decline being led by a drop in cement prices.Wholesale Price Index (WPI) for the week ending March 31 rose 5.74 per cent compared to 6.39 per cent the previous week, although much of that drop was because of a positive base effect.Week on week the index still continues to rise although by a marginal 0.1 per cent. However, the price of manufactured goods was reassuring, which have been consistently rising, held steady in the last week of March.At the same time cement prices dropped 0.6 per cent suggesting that supply side measures taken by the government may be starting to seep through the system.