Mumbai: The average inflation during 2009-10 is projected to remain negligible at just 0.1 per cent as against 8.3 per cent in 2008-09, Centre for Monitoring Indian Economy (CMIE) said in its monthly review here.

Inflation till April 18 was 0.3 per cent. It is expected to hover around this level in most months of fiscal 2009-10, CMIE said.

During the year, prices of fuel products and manufactured goods is projected to see a fall while inflation in primary articles will remain firm.

The Reserve Bank of India (RBI) has projected lower money supply growth during FY 10. Capacity expansion is expected to continue during FY 10. All these factors are expected to keep downward pressure on inflation in 2009-10.

In addition to these factors, higher base will also play a role in bringing down inflation in 2009-10, CMIE said.

Prices of fuel and electricity as a group are projected to see a decline of six per cent as against 7.4 per cent rise in FY 09. Electricity prices are expected to rise during the year but a decline in petroleum product prices will more than compensate for the rise in electricity prices.

 

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Source : PTI