Caption

New Delhi, Oct. 16: Inflation fell to 11.44 per cent in the first week of this month on the back of falling prices of crude oil and manufactured goods, providing some cheer to an economy reeling under the impact of the global financial crisis.

Inflation in the corresponding period last year was 3.22 per cent.

A finance ministry statement, however, said the prices of 30 essential commodities rose to 7.88 per cent.

Analysts said inflation would fall further with crude prices dipping to $75-levels .

D.K. Joshi, principal economist with rating agency Crisil, said, “Inflation could slide further as crude has continued to soften during October. Besides, falling commodity prices would decrease the prices of manufactured goods.”

For the week ended October 4, the price of naphtha declined 11 per cent, aviation fuel, 6 per cent and furnace oil, 5 per cent. Bitumen became dearer by 4 per cent.