Inflation declines to 3.92%

Inflation declined to over 14 months low of 3.92% for the week ended February 7, from 4.39 per cent on the weekended Jan 31. Reserve Bank of India may consider the slide in the inflation figures as proper time for rate cuts.

The inflation rate in India was once high with around 12 per cent in August last year. The fall in the inflation rate would give respite to the household economy. However, the impact of the global financial crisis is still there on the economy.

The further fiscal measures by the government of India and RBI are expected to get relief from the impact of the global slowdown.