Inflation, based on the wholesale price index (WPI), fell by 0.63 percentage points to 7.01 per cent (provisional) during the week from 7.64 per cent (p) recorded in the previous week. However, it was still much higher compared to 4.31 per cent recorded in the same week last year.

Inflation has fallen by about 1.85 percentage points in the last six weeks after it touched a three year high of 8.85 per cent.

However, the decline would only mean that prices of food articles, particularly vegetables and edible oils, have started easing from its previous highs.

Inflation had risen to 8.85 per cent in first week of November as prices of agricultural commodities skyrocketed due to shortages.

In the present week index of "food articles" eased by one per cent while that of "food products" came down by 0.5 percent.

The index for "all commodities" (base:1981-82=100) during the week declined by 0.2 per cent to 357.1 (p) against 357.9 (p) in the previous week.

Compared to wholesale prices, inflation still ruled high on consumer price index for industrial workers (CPI-IW) at 18.6 per cent in October.

This is the highest ever inflation on CPI-IW. The previous highest were 16.3 per cent in September this year and 16.1 per cent in January 1991.

Meanwhile, inflation based on final WPI for the week ended October 17, the latest available, stood at 8.1 per cent compared to eight per cent on the provisional index.

The final index for all commodities for the week stood at 358.8 as against the provisional figure of 358.4.

In the current week, index of "primary articles" declined while indices for "manufactured articles" and "fuel, power, light & lubricants" remained unchanged during the week.

Among the commodities, whose prices fluctuated substantially during the week were rice bran oil (up 7 per cent), raw silk,copra and coconut oil (up 5 per cent each), soyabean and cement (up 4 per cent), vegetables (down 6 per cent), gur (down 5 per cent) and sunflower (down 4 per cent).

Index for "primary articles" declined by 0.6 per cent to 392.5 from 395 on account of a one per cent fall in food articles index.