Inflation drops to 6.84 per cent from 8 per cent

The inflation drops further to 6.84 per cent from 8 per cent. The inflation rate is recorded nine-month low for the week ended 6th December, according to media reports.

Despite the global financial crisis the inflation has been decreasing significantly in India. This is a great respite for the Indian economy which is being reeling under the pressure of global financial crisis. The fall in inflation rate was recorded in the backdrop of the economic slowdown, which led to a slump in crude oil prices and other commodities

The inflation was recorded 8 per cent last week, before last week the inflation rate was at 8. 4 per cent. The government has also declared cut in the fuel prices recently. The cut in the fuel price is a big relief for common men.

The economy is now getting back to its strong position. It seems that the bailout package and other fiscal mechanism by the government of India have been effective. The Indian economy is recovering from the hard impact of the global financial crisis.

However, the second quarter of the current fiscal year result was bit of disappointing as GDP rate was recorded at 7.6 per cent. Probably, the third quarter result would be much better than the second quarter results, as the inflation drooped to 6.84 per cent.