Inflation falls, touches 11.89 %

Inflation marginally dipped to 11.89 per cent for the week ended July 12. A good sign of down side of the inflation after it reached to 13 years high record. According to the latest media reports, the inflation has touched to 11.89 from 11.91. It was expected the the inflation would touch to 12.05. However, the fall is unexpected but a good news for the people as well as for the government.

Inflation has softened somewhat with prices of many essential items either declining or remaining static. The trend for the past three weeks connotes that the rate of inflation is stabilizing a bit. The figure for the week ended July 12 is quite in line with the rate of inflation for the week ended July 5, 2008 that stood at 11.91 per cent, marginally higher than the rate of 11.89 per cent reported a fortnight ago. Probably, the monetary policies by the Reserve Bank of India will be effective in controlling the inflation. This is big respite for the government of India and Finance Minister. Now RBI would try to focus on the other aspects to down size the inflation rate further.