Inflation at 9-month low of 8.58 percent in October
Monday, 15 November 2010, 23:21 IST
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New Delhi: Inflation fell for the second consecutive month to a nine-month low of 8.58 percent in October, which together with a slowdown in industrial growth may prompt RBI to halt its monetary tightening stance. The 0.04 percent decline in inflation from 8.62 percent in September is significant, given that inflation stood at just 1.48 percent in the same month last year. As a result of the low base in September, 2009, the rate of inflation in September, 2010, appears elevated, which is known as the "base effect". However, the decline in inflation may prove temporary, since it has become a trend nowadays for the numbers to witness frequent upward revision after being initially announced. For the month of August, inflation has been revised to 8.82 percent from the earlier provisional estimate of 8.51 percent.
Source: PTI
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