Inflation dips to 5.38%

Inflation declined for the fourth consecutive week ended May 21 to 5.38 percent mainly due to cheaper primary articles, including food and fuel products, even as fears that it could spurt looms large over an imminent price hike in fuels.

The widely tracked point-to-point Wholesale Price Index inflation declined by 0.17 percent from the previous week's level of 5.55 percent and it was 5.20 percent in the year ago period.

WPI fell by 0.1 percent to 192 points even as heavy weighted manufactured products' prices remained unchanged for the second consecutive week. The index was 182.2 points in the year ago period.

Oil PSUs, so far, have not raised the prices of petroleum products, a move, which analysts fear, could spurt inflation, even as the government is toying with the idea of withdrawing the export incentive duty drawback scheme for oil sector.