During the week, annual inflation rate based on the wholesale price index (WPI) increased to 3.95 (provisional) from 3.84 per cent (p) a week ago. Inflation rate had stood at 6.67 per cent during the corresponding week of the last year.

Inflation rate is moving up since May eight when it had fallen to a 84-week low of 3.67 per cent.

The index for all commodities (Base: 1981-82=100) rose from 357.6 (provisional) as against 357.1 (p) during the previous week, recording a 0.1 per cent rise.

The present increase in inflation is mainly due to higher prices of vegetables, fibres, sugar, jute, cereals, pulses, eggs, spices and raw cotton.