Inflation falls to 6.62% in January

The headline inflation dipped to three year’s low of 6.62 per cent in January 2013 from 7.18 per cent in December 2012. The inflation was at 7.24 per cent in November 2012.

Considering the moderation in inflation in December 2012, the RBI had slashed the key interest rates recently.

The fall in inflation would lead to further cut in interest rates by the apex bank if it finds time conducing for further cut in key interest rates to boost the economy.

However, the hike in the petrol and diesel deregulation would have adverse impact on the inflation in India. The food inflation in primary articles was increase during the same period, onion at 11.52 per cent and potato at 79.07 per cent.

The easing inflation data could not help the market to close in green; both the stock markets were ended in red on Thursday. The BSE Sensex was closed at 19,497.18 losing 110.90 points or 0.57%.

The Nifty was closed at 5,896.95 points shedding 36points or 0.61%.