India's most commonly watched barometer for inflation is expected to fall to zero per cent by end March 2009 following a cut in factory gate duties, aviation turbine fuel prices and a base effect, Axis Bank<http://economictimes.indiatimes.com/articleshow/4244531.cms#>said in a note.
Wholesale price index was running at 3.03 per cent in the 12months to Feb. 21, below the previous week's annual rise of 3.36 per cent. It peaked around 13 per cent in August. A revival in demand is unlikely to be so strong that there is a reversal in trends and WPI inflation is likely to be in the negative zone even in April, Axis Bank analysts wrote in a note. Last week, the central bank<http://economictimes.indiatimes.com/articleshow/4244531.cms#>cut its policy rates by 50 basis points to their lowest since they were introduced in 2000. But consumer price inflation, which is more representative of a household consumption basket, continues to be high, but that should also start easing on the back of cuts in state-set fuel prices and service tax cuts, Axis Bank said. Latest data showed the monthly wholesale price index (WPI) inflation for January 2009 was at 5.2 per cent, sharply lower than the CPI inflation of 10.5 per cent. B.Karthick Research Analyst WWW.KENCES1.BLOGSPOT.COM <http://www.kences1.blogspot.com/> --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
