Inflation goes Down to Three Years Low to 6.62 percent in January 2013

The inflation rate of India dropped down to the three year low in the chart to 6.62 percent in January 2013 from the 7.18 percent, measured in December 2012. The inflation was measured based upon monthly Wholesale Price Index.

The official Wholesale Price Index for All Commodities (Base: 2004-05 = 100) in January, 2013 rose by 0.4 percent to 169.2 (Provisional) from 168.6 (Provisional) for the previous month.

Slowing exports and decline in investments and low demand in the domestic market have been a major factor in slipping down the growth rate of India. The two factors have affected the manufatruing as well as service sectors of India.

The growth forecast for the running fiscal year that would end on 31 March 2013 was lowered by the India’s Statistical Office to 5 percent. The Reserve Bank of India also changed its forecast from 5.8 percent to 5.5 percent. To revive a fresh air in the slowing down economic conditions of India, the Reserve Bank took a major step of lowering the key interest rate from 8 percent to 7.75 percent; this was the first step in nine months. The Policy makers have also taken afresh steps to revive the slowing economic conditions of the nation.