| Inflation drops to 5.77% from 6.09% |
| BS Reporter / New Delhi May 4, 2007 |
| A higher base effect and the arrival of the rabi wheat harvest finally saw wholesale price index (WPI)-based inflation drop 32 basis points to 5.77% for the week ended April 21. Inflation held at 6.09% in the previous two weeks. Analysts predict that inflation will fall further now that food prices, led by wheat, are abating and will take the pressure off the Reserve Bank of India to raise interest rates to cool demand. However, the fall was partly due to a higher base over the corresponding period last year. The WPI during the week ended April 21 was 210.90 |
