After staying in the area of double digits for quite sometime now, the inflation has come down to single digit figure. For the month of July, it stood at 9.97 per cent, which is the lowest level it has come down to in the last five months.

The good news is that the figure remained at that level despite increase in prices during the period. Looking at this, the finance minister, Pranab Mukherjee is quite hopeful that the things will take a turn for the better.

Talking to the media he said that he was very hopeful that the figures will become even more moderate and the current conditions are suitable for further decline. He further added that the increased policy rates have also shown their impact, besides the seasonal factors working in this regard.

Fall in prices of food and non-food based items have led to this. Better conditions of monsoon have also played a major role.

During the month of June, the inflation was at 10.55 per cent while for May it was at 11.14 per cent. These high rates have become serious political issue.