The Hindu Business Line : Inflation moderates to 6.05 per cent

NEW DELHI: Inflation eased to 6.05 per cent during the week ended February 17, influenced by cheaper auto fuels, essential food products and some manufactured goods.

Though wholesale prices-based inflation moderated quite a bit during the week, it was still way above the 5.5 per cent level desired by the Reserve Bank for this fiscal.

Inflation had stood at 6.63 per cent for the previous week and just 4.13 per cent in the year-ago period under review.

The first official data, released after presentation of the Budget in Parliament, comes as a respite to the government, whose annual financial bill focused mainly on containing the price line.

However, the impact of steps announced in the Budget to tame inflation can be known only in the coming weeks.

Inflation fell mainly due to cut in prices of petrol by Rs two a litre and diesel by Re one per litre on February 15. Its direct effect was evident as the category of fuel, power, light and lubricants has 14.23 per cent weight in overall inflation index.

Among food products, vegetable, fruits, pulses, sugar, khandsari, gur, edible oils, egg, meat and fish declined. Mineral oil among fuel items also fell, as did some manufactured items such as zinc.

Besides, the RBI had also announced measures to tighten money supply by increasing the short term lending rate, Repo and increasing the requirement for banks to keep cash with the central bank. - PTI

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