Here is a good news for everyone. The annual inflation rate of India has further slipped down to 6.61 percent for the week ended December 13 as compared to 6.84 percent the week before. The wholesale price index (WPI) for all commodities declined 0.2 percent to 230.7 (provisional) from 231.1 (provisional) the previous week.  According to the chief economist at credit rating agency Crisil, D.K. Joshi, the fall in the prices of oil has resulted in the decline of inflation. India's inflation rate was recorded at 3.84 percent during the corresponding week the previous year.

 

According to the data released, the index for primary articles triggered 0.1 percent to 249.2 (provisional) from 249 (provisional) the previous week. However, the manufactured products index fell 0.3 percent to 201.7 (provisional) from 202.4 (provisional) in the previous week.  Commenting on the downward trend of the inflation rate, Joshi assured that inflation will drop to 5 percent, the comfort level defined by the RBI (the apex Reserve Bank of India) within a month.

 

Mr Joshi however, pointed out that currently the growth is slipping down. According to him, the government will have to implement polices that can prevent growth from slipping further. He dismissed the room for fiscal stimulus and added that more rate cuts can be undertaken in this situation.