Inflation drops to 5.07% from 5.67%

Inflation has come down to 5.07 per cent from 5.67 per cent for the weekended January 24. This is the first fall in the inflation rate after up for last two consecutive weeks.

Considering the inflation rate the RBI may take stock of its credit policy for more liquidation in the system. The WPI for all commodities recorded down by 0.2 per cent. The down in the inflation would give relief to the people.

Earlier, the strike by the transporters led the inflation to soar for two consecutive weeks. But the slide in the inflation in the last week shows the lower impact on the bottleneck in the market.

The government had cut the fuel price prices recently and expected that the cut in the fuel prices would lower the inflation further more. It is clear that the economy backs to its track of normalcy again, but the major concern would the global financial crisis.