Inflation, for the week ended August 16, slipped a bit to fall to 12.40 per cent.
The government's efforts to bring down inflation to tolerable limits and curb runaway prices might have begun to bear some fruit.
Slightly lower prices of food items like fruits, vegetables and milk pushed inflation down to to 12.40 per cent from 12.63 per cent a week ago.
Items that pushed up the wholesale prices-based inflation by 0.19 per cent include tea, pulses, cotton yarn and cement.
Inflation was 4.24 per cent during the corresponding week last year.
"Annual inflation of 30 essential commodities, however, continues to be range bound 5.7 per cent to 6.7 per cent in 19 weeks of the current fiscal," said a finance ministry statement.