New Delhi: Inflation decreased to 6.05 percent in the week ending February 17, but it is still above the target the Reserve Bank of India (RBI) has set.
Cheaper auto fuels, essential food items and some manufactured goods reduced inflation but the RBI wants the level to stay at 5.5 per cent level this fiscal.
The Government has announced a series measures, like a ban on forward trading in wheat and rice, but the 6.05 percent figure is still high.
Inflation fell mainly due to cut in prices of petrol by Rs two a litre and diesel by Re one per litre on February 15. Its direct effect was evident as the category of fuel, power, light and lubricants has 14.23 per cent weight in overall inflation index.
Among food products, vegetable, fruits, pulses, sugar, khandsari, 'gur', edible oils, egg, meat and fish declined. Mineral oil among fuel items also fell, as did some manufactured items like zinc.
Besides, RBI had also announced measures to tighten money supply by increasing the short term lending rate, Repo and increasing the requirement for banks to keep cash with the central bank.
Major relief to inflation came from fuel, power, light and lubricant group as the index declined by 0.6 per cent due to the lower prices of petrol, which declined by four per cent.
Among other products in the group, prices of the high-speed diesel and light diesel oil declined by three per cent each and bitumen prices went down by two per cent.
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