Inflation dips to 3.02%

Inflation dips to 3.02%


New Delhi: Inflation for the week ended 20 October fell to 3.02%, close to the Reserve Bank’s target of 3% in the medium term.

The inflation rate stood at 3.07% in the previous week and 5.61% in the corresponding week last year.

This is the first official data on inflation after RBI announced its mid-term monetary review in which it raised cash reserve ratio by 50 basis points to suck out excess liquidity.

While retaining its forecast for inflation at five per cent this fiscal, RBI lowered its objective for the medium- term to 3% against 4-4.5% as announced in the last quarterly review in July.

During the week, prices of various items moved in a narrow range. While food items like maize, arhar, masur and wheat turned expensive, some others like fish marine, bajra and urad turned cheaper.

Among manufactured goods, chemicals and chemical product prices declined while most other items rose.