Tags: RBI , Inflation rate

New Delhi: Inflation declined further to 3.03 per cent for the week ended February 21, from 3.36 per cent in the previous week.

The wholesale price-based inflation stood at 3.36 per cent in the previous week, while it was 5.69 per cent during the corresponding period last year.

During the week, prices of food items like masur, tea, fruits and vegetables and gram declined.

At the same time there was a 4 per cent decline in price of aviation turbine fuel.

Inflation data was released a day after RBI reduced key policy rates by 50 basis points signalling banks to cut down interest rates.

Continuing its downward slide, inflation fell to about a 15-month low of 3.36 per cent on February 14, providing greater room to the RBI to cut interest rates to perk up the slowing economy.

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.

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