Inflation drops to 4.1%

Reversing its very short upward trend, inflation fell by 0.23 per cent to touch about two-year low of 4.10 per cent for the week ended June 18 even as food items and manufactured products become costlier.

The point-to-point wholesale price index inflation fell from the previous week's 4.33 per cent from as high as 6.62 per cent a year ago, showing the recent decline was due to base year effect.

The WPI rose by 0.2 per cent to 192.9 points due to costlier primary articles and manufactured goods prices, even as fuel prices stood unchanged. The index was 185.3 points in the year ago period.

A bond dealer said inflation, which is moderating even after the impact of recent fuel price hike, is likely to stay near 5.0 per cent this fiscal.

But India Inc feels that petrol and diesel price hike would impact inflation.