The inflation rate continues to fall in the third consecutive week. It now stands at 8.84 per cent during the week ended November 15 from 8.90 per cent in the previous week. It would bring more respite for the union government who is facing criticism on price rise and internal security issues. However, inflation rate is still high and above the comfortable limits fixed by the reserve bank. It was at 3.35 per cent during the same week of last year.

The inflation rate for primary articles increased further to 11.90 per cent from 11.66 per cent. 20 items out of 98 registered increase in prices for the reporting week. Commodity prices also increased by 40 basic points for the week ended November 15. However, fuel prices remained in the comfort zone.
 
Meanwhile, industry is demanding further cut in interest rates to push the economic growth. Industry is still facing liquidity problem despite cutting of key interest rates by the apex bank. HDFC Bank Chairman Deepak Parekh said that the bank would cut interest rates after the revision of interest rates by RBI. ICICI Bank CEO and Managing Director, K. V. Kamath  also expressed similar sentiments and said that rates must be revised further to increase demand and making funds cheaper.