Inflation touches 4%

Inflation declined to around 14-month low of 4.03 per cent for the week ended June 16, as essential food items and some manufactured products turned cheaper, easing pressure on RBI to further increase interest rates.

The wholesale prices-based inflation rate fell for the 10th consecutive week from the previous week level of 4.28 per cent.

Inflation also fell due to some base effect as it stood at high of 5.5

per cent during the corresponding week last year.

Earlier in the week, Finance Minister P Chidambaram had said in London that central bank tight monetary policy and rupee appreciation had helped to moderate inflation and more rate rises may not be needed if the trend continues.