Click to play videoNew Delhi: Inflation has dropped sharply to 11.44 per cent for the week ending October 4 from the previous week when it was at 11.80 per cent
A Newswire18 poll had estimated inflation rate at 11.81 per cent.
The Wholesale Price Index for all commodities was down 0.5 per cent on the week. The sharp fall in inflation could mean that Reserve Bank of India will cut interest rates.
The sharp fall in inflation is being attributed to decline in oil prices and manufactured goods, giving some respite to the government which is battling the impact of global meltdown.
The index for fuel prices declined by 1.1 per cent on account of lower prices of naphtha, aviation turbine fuel and furnace oil.
However, there is some bad news too as the Institute of Economic Growth has cut India's growth forecast for 2009 to 7.0 per cent versus 7.6 per cent earlier.
The global crisis, which is pushing developed economies like the US into recession, is expected to affect India's agricultural, industrial, as well as services sector.
(For updates you can share with your friends, follow IBNLive on Facebook, Twitter and Google+)
 |
 |
 |
|
displayed with permission. Use of the CNN name and/or logo on or as part of CNN-IBN does not derogate from the intellectual property rights of Cable News Network in respect of them.