New Delhi: Inflation touched five-year low of 3.07% for the week ended October 6, mainly due to decline in prices of essential items like fruits and vegetables, eggs, cereals and some manufactured goods.
The wholesale price-based index stood at 5.36% in the corresponding week last year.
During the week inflation remained below RBI’s forecast of close to 5% for the current fiscal, raising expectations of a possible rate cut in its half-yearly review of credit policy on October 30.
Among the food articles, fruits and vegetable prices dipped by 4%, eggs and fish fell marginally by 1%, while bajra and maize declined by 2% each.
However, prices of furnaces shot up by 46% followed by aviation turbine fuel which rose by 5%. Prices of broad-gauged diesel locomotive prices also jumped by 9%.
Meanwhile, festival demand has pushed up the prices of decorative laminates by 7%.