Inflation dips to 3.03 per cent

Inflation declined to 3.03 per cent for the week ended February 21 mainly on account of lower prices of food items such as fruits and vegetables and tea, and some manufactured items.

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.u00a0

Among manufactured product, prices of imported edible oil, salt and mustard oil declined.

However, prices of maize, arhar, sugar and ghee firmed up. Among other things, nickle alloy slipped by as much as 24 per cent, alloy stainless steel was down by 21 per cent, zinc ingots was cheaper by 8 per cent and bus chassis (diesel) was down by 5 per cent.