It was 6.86 per cent the week before. However, it was just 3.44 per cent during the corresponding week last year (Oct 21). The latest 0.08 per cent fall was on account of decline in prices of minerals, plastic items, synthetic yarn, cotton seed, ragi and fish.

Last week, it dropped to the six per cent range after reigning above the seven per cent mark for two weeks in a row. Two weeks ago, it touched the 97-week high when it stood at 7.56 per cent mainly due to hike in the prices of petroleum prices.

The Institute of Eeconomic Growth predicted that the inflation rate was expected to cross the nine per cent mark by the end of this month.

With internationl crude oil prices going up steadily, the fiscal deficit is expected to be around Rs 80 billion to 90 billion.

Despite the major indices such as food articles and minerals witnessing a substantial decline, the wholesale price index for all commodities (base 1993-94) rose by 0.1 per cent to 157.5 from 157.3 in the previous week. However, the index for fuel, power, light and lubricants rose by 0.9 per cent.

The final wholesale price index for all commodities (base 1993-94) stood at 153.7 on August 26, 2000, as against the provisional index of 153.4. The inflation rate based on final index worked out at 6.15 per cent in contrast to 5.94 per cent based on the provisionl index.

The inflation rate based on CPI for industrial workers, which is the real barometer of retail prices, dropped by 0.49 per cent to 3.50 per cent in September 2000 from 3.99 per cent in the previous month.

With fish (inland) prices plummeting by 16 per cent, ragi by four per cent, arhar by two per cent, rice, jowar, fruits, vegetables and eggs by one per cent each, the index for food articles, under the primary articles group, slumped by 0.5 per cent to 173.5 from 174.3. But bajra became dearer by five per cent, milk by two per cent, gram and fish (marine) by one per cent each.

The index for non-food articles rose by 0.1 per cent to 144.7 from 144.6 because soyabean prices went up by six per cent, fodder by three per cent, copra by two per cent, gingelly seed and raw hides by one per cent each. But the cotton seed prices dropped by six per cent, mesta by three per cent, raw rubber by two per cent, groundnut and kardi seed by one per cent each.