However, it was orbiting below the four per cent mark at 3.95 per cent during the corresponding week last year.

Even though imported petroleum crude prices fell sharply during the week, the inflation rate had shown a marginal rise. The increase in prices of food articles, manufactured food products and machine tools attributed to the jump in the inflation rate. But soyabean, rape seed, mustard seed, woollen yarn, acrylic fibre and sulphuric acid became cheaper.

The onion prices have gone up by three-fold in recent weeks, making it a luxury item for a common man. The inflation rate has been hovering in single digits for 181 weeks in succession pushing aside the old record of 1993 when it ran in single digits for 52 weeks at a stretch.

But it had been more volatile sinceJuly 18. Two weeks back, it had soared to 154-week high. The main reason for the inflation to accelerate was the sharp rise in prices of imported edible oils and edible oils following the ban on mustard oil.

The inflation rate witnessed a steep fall of 0.69 per cent in the previous week which was sharpest decline since March 4 1995 when it dropped by 0.92 per cent.

This was also for the sixth time it had declined during the current fiscal.The International Monetary Fund (IMF) had urged the Indian government to contain the runaway inflation rate.

In contrast, the inflation rate based on consumer price index for industrial workers (base period 1982) which is the correct picture of Indian economy was in double digits for the three consecutive months at 14.80 per cent during July, whereas the average inflation rate based on whole sale price index was much lower at 8.01 per cent.