labels: economy - general, governance
Inflation falls to 6.5%news
Our Economy Bureau
01 January 2005

New Delhi: Decline in prices of primary articles and manufactured products were primarily responsible for bringing down the annual rate of inflation to 6.5 per cent for the week ended December 18. The rate of inflation has declined for the sixth week in a row.

The government and the Reserve Bank of India (RBI) took fiscal and monetary measures which yielded results. Also softening of crude oil prices has helped contain prices.

The inflation rate has been declining since November 6 when it touched 7.76 per cent. It remained stable for two weeks at 7.34 per cent before sliding to 7.3 per cent The fall has continued with the rate of inflation dropping to 6.5 per cent for the latest reporting week.

The wholesale price index (WPI) declined by 0.1 per cent to 188.5 points with the indices of primary articles and manufactured products going down. It was at 177 points a year ago.

The index of primary articles'' group fell marginally by 0.1 per cent to 185.8 points due to cheaper food items. The index was 180.7 points in the previous year period.


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Inflation falls to 6.5%