Falling for the second consecutive month, inflation declined 0.04 percentage points, to a nine-month low of 8.58 per cent in the month of October. Inflation had stood at 8.62 per cent in September 2010, and at just 1.48 per cent in the same month last year. Food items like onions, and other protein-based articles felt the maximum inflationary pressure in October. Onion prices rose 24.07 per cent, as parts of Maharashtra, the biggest producer of the vegetable, saw large-scale crop damage due to heavy rain. Milk prices rose just 0.68 per cent on a monthly basis. Fruits prices rose 4.71 per cent on a month-on-month basis, but were 15.84 per cent higher on a yearly basis.Commenting on the latest inflation data, Finance Minister Pranab Mukherjee said the Reserve Bank's monetary action has helped bring down the rate of price rise, but supply side constraints were exerting pressure. He noted that the international situation also impacts inflation.For the month of August, inflation has been revised to 8.82 per cent, from the earlier estimate of 8.51 per cent.
News On AIR | November 15, 2010 8:45 PM
Inflation declines to a nine-month low