Inflation dips to 15-month low at 3.36 %

February 26, 2009.

Continuing its downward slide, inflation fell to about a 15-month low of 3.36 per cent.While most products including food and manufactured items became cheaper, some luxury items like wine turned expensive,leading to a fall of 0.56 percentage points during the week ended February 14 from 3.92 per cent in the previous week.

Economists say the fall in inflation was expected as the global financial meltdown and slowing economy have depressed prices.

This would prompt the Reserve Bank to cut key rates or other tools to spur economic growth.

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