Inflation dips to 3.32%
Inflation dips to 3.32% India`s wholesale price index based Inflation rate dropped to 3.32% for the week ended September 8, as against 3.52%, in the previous week. The inflation figures reflected the market estimates, which also stood at 3.32%. The Reserve Bank of India (RBI) has been able to maintain a combination of sustained low inflation accompanied by accommodative monetary policy worldwide, contributing to financial stability. Recently RBI Governor, Dr Y V Reddy in Mexico said that the recent gains in bringing down inflation and in stabilizing inflation expectations should support the current expansionary phase of growth cycle. It is, however, necessary to continuously assess the risks to the inflation outlook emanating from high and volatile international crude prices, the continuing firmness in key food prices and uncertainties surrounding the evolution of demand-supply gaps globally, as well as in India. In addition to that, Petroleum & natural gas minister Murli Deora gave assurance, that government will bear the additional cost of 85% of the increased oil cost burden. This step, by the government is a sigh of relief for consumers and common man.
