A strong base effect brought down the wholesale price index based inflation to 3.32% for the week ended September 8 as compared to 3.52% in the previous week. The rate was 5.22% during the same week last year.The downward trend of inflation continued though indices of major groups like primary articles and manufactured items rose by 0.2% each. Prices of fruits and vegetables, condiments, spices, wheat, sooji and imported edible oil increased whereas the prices of bajra, fish-marine and maize, soyabean saw a decline. Fuel group prices declined by 0.1% during the week.The government also revised upward the inflation rate for the week ended July 14 to 4.76% from the provisional figure of 4.41% declared earlier.Inflation fears had forced RBI to raise interest rates many times during the past. RBI had last raised interest rates in March. At its policy review in July, it raised the cash reserve requirement for banks by 50 basis points to 7%. On the fiscal policy front, the government has banned export of pulses wheat, skimmed milk powder to curb price rises. It has also reduced customs duties on wheat, maize, pulses to zero level.
