Inflation drops to 5.07% from 5.67%

Inflation has come down to 5.07 per cent from 5.67 per cent for the weekended January 24. This is the first fall in the inflation rate after up for last two consecutive weeks. The inflation in India was seen in double digits last year.

The inflation has drooped to significantly during December 2008 and January 2009. The inflation has rose due to many factors including the rise in crude in the international market. The price of the crude in the international market has been seen constant around $ 40 per barrel.

The government of India has slashed the fuel price twice, once in last year in December and currently in January 29. The cut in the fuel price is expected to lower the inflation by two per cent. And the inflation would come down to very normal rate in the year.

The last year protest by the transporters led the inflation to rise by some points. But the situation is under control and price of goods and services are at proper. The RBI may come out with more polices to check further the impact of the inflation and global financial crisis on Indian economy.