Indian inflation fall to 5-year lows with prudent monetary policy

NEW DELHI, Nov 2, 2007 (AFP) – India’s inflation rate is pursuing a steady decline around five-year lows, official data showed Friday. Annual inflation fell slightly to 3.02 percent for the week ended October 20 from 3.07 percent for the previous week, according to the wholesale price index, India’s most watched cost-of-living monitor.

Inflation stood at 5.46 percent a year ago but has gradually dropped from two-year highs of nearly seven percent earlier this year. Interest rates are at four-year highs and the Reserve Bank of India, the central bank, held rates steady at 7.75 percent at its monetary policy committee meeting on October 30.