Inflation slips to 3.26

The annual rate of inflation stood at 5.41 per cent a year-ago. However, bankers are doubtful if RBI would soften its stand on interest rates due to rising inflow of forex, crossing 16 billion so far in 2007, and high international crude oil prices.

The prices of pulses like moong and urad declined by 1 per cent during the week besides tea prices, which declined by 4 per cent and edible oils 0.1 per cent also helped to bring down the inflation rate. The prices of vegetables, however, rose by 0.6 per cent, and fruit and milk prices remained unchanged during the week. The index of fuel, power, light and lubricants remained unaltered.