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Inflation at 7-month low

NEW DELHI: The rate of inflation dipped further to 8.40 per cent for the week ended November 22 from 8.84 per cent in the previous week on account of lower prices of non-administered fuel products and certain manufactured food items even as other food articles turned costlier.

With the Wholesale Price Index-based inflation sliding for the fourth straight week in a row to its lowest level in seven months, the Reserve Bank of India (RBI) now has a higher comfort level to go in for deeper rate cuts aimed at providing increased bank credit at lower rates of interest.

The monetary policy changes by the apex bank is to form a part of the comprehensive stimulus package to be unveiled by the Government to boost various sectors of the economy such as housing, auto, export, small and medium enterprises (SMEs) and other labour-intensive industries which are witnessing a serious slowdown and job cuts in the wake of the global financial crisis.

Among food articles, coffee, sea fish, masur, rice, eggs, arhar, fruits, vegetables and gram turned costlier during the week.

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