January 28, 2009 1:07:56 pm
The annual inflation rate is seen easing slightly in the week to Jan. 17 after a strike by truck drivers had pushed up prices the week before,a Reuters poll of 14 economists showed on Wednesday.
The median forecast was for a 5.41 per cent rise in the wholesale price index in the 12 months to Jan. 17,compared with 5.60 per cent in the previous week.
Inflation had fallen to an 11-month low of 5.24 per cent in early January.
“The impact of truckers strike was shortlived. For the reported week,we expect primary articles and manufactured product prices to resume their downward trend,” said Shubhada Rao,chief economist at Yes Bank.
Other analysts said there could be some residual impact of the strike in the data,which is due around noon (0630 GMT) on Thursday.
On Tuesday,the RBI said it expected annual inflation to be below 3 per cent by the end of the 2008/09 fiscal year in March.
Inflation raced into double digits in June last year after the government raised state-set fuel prices,and peaked just under 13 per cent in August.
India is likely to cut state-set fuel prices later on Wednesday,a government official,who did not want to be identified,told reporters. Analysts said a cut would likely see the inflation rate fall.
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