Inflation unchanged at 0.61%

Inflation remained unchanged at 0.61 per cent for the week ended May 16 in comparison to the previous week, giving head room to the government to initiate expansionary measures.

Inflation stood at 8.66 per cent during the same week a year ago. "Inflation is already reasonably down. There has been a little bit improvement ... So you know, we have some leverage," Finance Minister Pranab Mukherjee had said on Thursday during his first interaction with the media after taking charge earlier this week.

He, however, did not spell out measures that the government is considering to stimulate the economy. This is the 11th week in a row when inflation stood below one per cent, indicating the possibility of a softer stance towards interest rates.

During the week, prices of food items like tea shot up 10 per cent, barley two per cent, and moong and urad one per cent each.

Mukherjee had said, "One of the first steps I propose to take is to meet bankers and get them committed to a more benign plan of action."

"Industry and business have been hurt by the cost of finance and its easy availability...the cost and the speed with which finance can be accessed remains a matter of concern," he said.