Inflation fell substantially by 0.62 per cent to 5.32 per cent for the week ended February 28 mainly due to the fall in prices of primary items, including fruits and vegetables, and non-food articles.
The point-to-point wholesale price index inflation fell from the previous week's near 6 per cent despite a price hike for manufactured products, notably food products, and the index was at 5.49 per cent in the year-ago period.
The WPI, however, stood unchanged at the previous week's figure of 180 points with fuel prices remaining firm for the fifth consecutive week. It was at 170.9 points in the previous year period.
The Reserve Bank of India on Thursday said it was monitoring inflation trends "carefully in the light of unexpected developments in the global oil and commodities market."
The government had earlier said it was difficult to maintain the targeted level of 4-4.5 per cent by this fiscal end.
The government had to drastically revise upwards inflation to 6.45 per cent for the week ended January 3 as compared to the provisional level of 6.09 per cent, while the final WPI stood corrected at 178.3 points against the provisional figure of 177.7 points.
With food and non-food articles becoming cheaper, the index of primary articles' group declined by 0.3 per cent to 182.6 points in the latest reported week as compared to 177.2 points during the same period in 2002-03.
Food articles' group index declined by 0.2 per cent to 180.6 points due to cheaper eggs (five per cent), ragi (three per cent), jowar (two per cent) and maize, masur, barley, gram and fruits and vegetables (one per cent each).
However, prices rose for poultry chicken (three per cent) and fish-marine, bajra and condiments and spices (one per cent each).
The index of non-food articles' group was down by 0.4 per cent to 193 points due to lower prices for cotton seed (three per cent), raw silk, copra and gingelly seed (two per cent each) and soyabean and groundnut seed (one per cent each), even as there was a 6 per cent hike in mesta price and one per cent in raw jute.
Fuel, power, light and lubricants' group index stood firm at 263.3 points despite gyrations in the global markets. The index was at 252.7 points in the previous year period.
The index of heavy-weighted manufactured products group rose by 0.1 per cent to 160.5 points due to costlier food products, rubber and plastic products, chemicals, non-metallic minerals and transport equipment. The index was at 150.4 points in the year-ago period.
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