India inflation slows further

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NEW DELHI, Feb. 14 (UPI) -- Inflation in India fell in January to a three year low of 6.62 percent year on year from December's 7.18 percent, the government said Thursday.

The January drop in the wholesale price index, the country's main gauge, was the first time in more than three years the rate had fallen to less than 7 percent.

The news was welcome to the government which has been battling high inflation, rising deficits, tight money and a slowing economy for months.

Earlier this month, the government's statistics office said India's gross domestic product in the current fiscal year ending March 31 was expected to hit a decade low 5 percent.

Thursday's inflation figures could encourage policymakers to take growth-supportive measures, and increase calls for more interest rate cuts by the central bank, The Wall Street Journal reported.