Inflation, based on the wholesale price index (WPI), fell by 0.28 percentage points to 8.04 per cent (provisional) from 8.32 per cent (P) the week before and 3.86 per cent in the corresponding week of last year. The fall in the rate of inflation during the week under review is despite a 0.1 per cent increase in the index for all commodities. This is the fourth consecutive week that the inflation rate has remained above the 8 per cent-mark.

Inflation breached the mark on July 11, following a sustained rise in prices of food articles, especially vegetables and edible oils.

In comparison to price rise based on WPI, the inflation based on consumer price index for industrial workers (CPI-iw) is much higher at 12.4 per cent for the month of June. The corresponding WPI figure for the month was 6.87 per cent. CPI-iw inflation hadbreached the double digit level in May when it reached 10.5 per cent. The WPI for all commodities (base: 1980-81=100) during the week increased by 0.1 per cent to 351.9 (P) from 351.7 (P) in the previous week.

Meanwhile, inflation based on the final index for the week ended June 6 (latest available) stood at 7.0 per cent as against 6.5 per cent on the provisional index during the same week. The final index for all commodities stood at 345.3 as against 343.7 on the provisional index.

Indices of all the three major groups in WPI -- primary articles, manufactured products and fuel, power, light and lubricants rose during the week under review.

Items from the WPI basket which fluctuated during the week were; ragi (up 6 per cent), bajra (up 4 per cent), barley and fruits and vegetables (down 4 per cent), rape and mustard seed (up 9 per cent), raw jute (down 4 per cent), steatite (up 9 per cent), jams (14 per cent), decorative laminates (4 per cent), talcum powder (11 per cent) and tooth powder (up 5 percent).During the week, the index of primary articles increased marginally to 379.0 from 378.9 for the previous week due to an increase in the prices of non-food articles.

Index for food articles fell 0.3 per cent to 438.9 from 440.3 due to cheaper barley and fruits and vegetables (4 per cent each), jowar (2 per cent) and moong, urad and eggs (1 per cent each).

However, prices of ragi (6 per cent), bajra (4 per cent), gram (3 per cent), rice, fish, condiments and spices (2 per cent each) and wheat, maize, arhar and masur (1 per cent each) from the sub-group went up during the week.

The index for non-food articles rose by 0.7 per cent to 376.8 from 374.3 due to an increase in prices of rape and mustard seed (9 per cent), castor seed (3 per cent), groundnut seed, copra and fodder (2 per cent each) and sunflower and soyabean (1 per cent each).

From the sub-group, prices of raw jute (4 per cent), raw cotton and mesta (2 per cent each) and gingelly seed and lac (1 per cent each) declined during the week.The index for the third sub-group in primary articles rose by 0.1 per cent to 167.8 from 167.7 due to a 9 per cent increase in the price of steatite.

The index for fuel, power, light and lubricants stood at 379.9 as against 378.9 in the previous week due to marginal increase in prices of mineral oils. The index for manufactured products group rose by 0.1 per cent to 331.4 from 331.1 for the previous week.