New Delhi, Aug 31: Inflation continued its free fall to touch this fiscal's lowest of 3.71 per cent for the week ended August 16 with essential consumption items like wheat, fruits, vegetables and edible oils becoming cheaper. The Wholesale Price Index (WPI) inflation fell for the seventh consecutive week by 0.24 per cent to hit a 31-week low from the previous week's level of 3.95 per cent, though prices of fuels and some manufactured products were unchanged.
Inflation was 0.26 per cent higher in the latest reported week as compared to 3.47 per cent in the year-ago period, thus indicating that the Government was able to keep the cost of living more or less around the previous year's levels.
The current trend is more in line with outgoing RBI Governor Bimal Jalan's expectation of benign inflation as the monthly average, which rose over six per cent in the beginning of this fiscal, had been tapering off in the subsequent weeks.
WPI fell by 0.2 per cent to 173.2 points despite costlier eggs, meat, fish, food products, textiles, paper and plastic products and chemicals and the index was 167 points in the previous year period.
The final point-to-point inflation and WPI for the week ended June 21 stood at their provisional levels of 5.21 per cent and 173.8 points.
Propelled by a 0.4 per cent fall in the price of food items and a sharp one per cent dip in non-food articles, the index for Primary Articles' group was down by 0.6 per cent to 180.6 points and it was 174.7 points in the year-ago period.
The index for Food Articles' group fell to 181.4 points owing to cheaper fruits and vegetables (three per cent), jowar (two per cent) and urad, masur and wheat (one per cent each).
Prices, however, rose for fish-inland (three per cent), poultry chicken (two per cent) and maize, fish-marine and mutton (one per cent each).
Non-Food Articles' group index fell to 183.3 points due to lower prices for soyabean (five per cent), groundnut seed (three per cent), safflower (two per cent) and raw cotton, rape and mustard seed and linseed (one per cent each), even as there was a two per cent price increase in sunflower and two per cent in niger seed.
The index for Fuel, Power, Light and Lubricants' group stood firm for the second consecutive week at 247.5 points and the index was 237.6 points in the previous year period.
Bureau Report