Combined inflation for urban and rural areas eased further to 8.1% in February 2014, from 8.8% in January 2014.
Inflation in urban areas fell to 7.55% in February from 8.09% in January. Food inflation in urban areas eased marginally to 7.16% in February from 7.55% in January 2014. Inflation for vegetables in urban areas fell to 7.36% in February from around 15% in January 2014.
Inflation related to fuel & power declined to 5.4% in February from 6.5% in January 2014. Inflation for housing stood at 9.88%. Inflation for clothing and miscellaneous items remained unchanged at 8% and 7%, respectively.
Precious metals are rallying, going against the conventional wisdom that US Fed’s tapering of QE will be bad for gold and silver. continued expansion of the global economy is driving up bullion prices. The latest US data showed a better-than-expected retail sales and jobless claims data. Bullion prices are also rebounding because of excessive pessimism that had gripped the precious metals last year. Over the past 10 days, silver prices on the MCX fell 2.63%, to Rs46,771/kg on 12th March from Rs48,035/kg on 3rd March, but seem poised to rally.