Inflation at 14-month low, price rise slows to 3.36%

New Delhi: India’s inflation fell to a 14-month low in mid-February as cheaper fuels fed into a slowing economy. The Wholesale Price Index, the most widely watched inflation measure, rose 3.36 % in the 12 months to 14 February, lower than the previous week’s 3.92% but slightly above a forecast of 3.31% in a ‘Reuters’ poll.

It was the lowest reading since 24 November 2007 when inflation stood at 3.11%. It was 5.66% a year ago. “Fiscal year 2008-09 is likely to end with inflation at 1% or below,” said Sujan Hajra, chief economist at Anand Rathi Securities in Mumbai. “I see very aggressive monetary action by the RBI (Reserve Bank of India), with the major part of the cuts coming in the next four months,” Hajra said.