Inflation hits 13-month low

India's inflation, as measured by the wholesale price index (WPI) dropped below 4% in the first week of this month to touch its lowest level in 13 months, putting more pressure on the Reserve Bank of India (RBI) to cut interest rates further. The annual point-to-point inflation declined to 3.92% in the week ended Feb 7 as against 4.39% in the previous week, the Commerce & Industry Ministry said in a statement. Economists had forecast a reading of 4.01%. The annual inflation rate was 4.98% during the corresponding week of the previous year. The current rate of inflation is the lowest since the 3.8% recorded in the week ended December 29, 2007. In ‘Primary Articles’, inflation decreased to 8% in the week under reference, against 9.1% in the previous week. In ‘Food Articles’, inflation declined across-the-board to 10.4% in the current week compared to 11.5% last week. However, it is still in double digits. In ‘Fuel & Power’, inflation rose fractionally to (-) 3% versus (-) 3.5% last week, due to higher inflation rates in aviation turbine fuel and naphtha. In ‘Manufactured Products’, inflation rate decreased to 4.9% in the current week, from 5.5% last week.