Continuing its southward journey, the headline inflation fell further to 6.84 per cent during the week ended December 6 from 8 per cent a week earlier.
Earlier a Reuters poll showed that the nation’s annual inflation rate was expected to have fallen sharply to a nine-month low in the first week of December after a cut in the domestic fuel prices.
The median forecast of 11 economists was for a 7.49 per cent rise in the wholesale price index in the 12 months to December 6, compared with 8 per cent in the previous week.
The government cut retail prices of petrol by 10 per cent and diesel by about 6 per cent with effect from December 6.
There is some uncertainty over whether the fuel price cut would be factored in this week, but I think it would be. However, that should only have a 15 to 20 bps impact on the inflation number
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