Inflation at 5-year low of 3.07 per cent

Inflation for the week ended October 6th touched a five-year low of 3.07 per cent , mainly due to decline in prices of essential items like fruits and vegetables, eggs, cereals and some manufactured goods.

RBI’s measures to keep inflation this fiscal below the 5 per cent mark are working very well and the expectationa are raising for a possible rate cut in the coming half-yearly review of RBI Credit Policy on October 30 3007.

Fruits and vegetable prices dropped by 4 per cent, Eggs and fish prices fell marginally by 1 per cent, while bajra and maize declined by 2 per cent each.