Inflation drops to 4.09%

The recent price hike of petro products, notably diesel, appears to have exerted no pressure on commodity prices with inflation falling to 4.09% in the week ended July 2, mainly due to cheaper food items.

The point-to-point inflation based on the wholesale price index (WPI) fell marignally by 0.05% from the previous week's level of 4.14%. It was as high as 7.08% in the year-ago period.

The WPI fell by 0.2% to 193.6 points despite fuel becoming costlier. While primary articles became cheaper, prices of manufactured items remained unchanged. The index was at 186 points in the year-ago period.

The final inflation was revised upwards to 5.67% during the week ended May 7 as compared to the provisional estimate of 5.61%. The WPI stood corrected at 192.1 points in the first week of May as against the provisional level of 192 points.