The rate of inflation eased further to 11.07 per cent for the week ended October 11 from 11.44 per cent in the previous week, mainly owing to lower prices of fruits and vegetables, pulses, certain spices and some manufactured and petroleum products.
Even as the government felt that the inflation was "still high," the fall in the Wholesale Price Index (WPI) based inflation for the fourth. consecutive week is expected to provide some cushion to the RBI to take measures to spur growth when it unveils its mid-term credit and monetary policy on Oct 24. Inflation is still high, but what is happening now, moderation in crude and commodity prices will have an impact on consumer prices as well, Finance Minister P. Chidambaram told journalists here.
Even as the government felt that the inflation was "still high," the fall in the Wholesale Price Index (WPI) based inflation for the fourth. consecutive week is expected to provide some cushion to the RBI to take measures to spur growth when it unveils its mid-term credit and monetary policy on Oct 24. Inflation is still high, but what is happening now, moderation in crude and commodity prices will have an impact on consumer prices as well, Finance Minister P. Chidambaram told journalists here.
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