The Hindu Business Line : Inflation rate eases to 6.05% on cheaper fuels

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New Delhi March 2 The country's wholesale price index (WPI)-based annual inflation was 6.05 per cent for the week ended February 17 but it was lower than the two-year high of 6.73 per cent recorded a fortnight back. The rate was also lower than the 6.63 per cent recorded in the week ended February 10. However, it was higher than the 4.13 per cent in the year ago period under review.

Respite for Govt

The slide in inflation rate would bring some respite to the Government, which has been battling against spiralling price rise in the economy.

The slide in inflation rate for the week ended February 17 could be explained by cheaper auto fuels, decline in prices of certain essential food items and also some manufactured products.

The Wholesale Price Index of all commodities was also lower at 208.6 points against 209.2 points the previous week.

Measures

To control inflation, Government has already reduced duties on various commodities in the current financial year. Official sources said the total revenue loss due to the various exemptions is estimated at about Rs 5,000 crore in a full year.

The recent steps taken by Government to control inflation include ban on futures trading in wheat and rice from February 28 this year, reduction in duty on sunflower oil, both crude and refined, by 15 per cent and exemption from additional customs duty of 4 per cent for crude as well as refined edible oils.

Besides the Government's fiscal measures, the Reserve Bank of India (RBI) has also been taking a slew of monetary measures to curb inflation.