After touching a 163-week high of 8.85 per cent in the first week of November, the inflation, based on wholesale price index (WPI) slid 0.31 points to 8.54 (provisional) in the previous week and fell another 0.41 in the present week.

Compared to this, inflation was at 3.98 per cent a year ago. The previous highest level of inflation at 9.01 per cent was recorded in the week ended September 23.

However, this sharp decline in the overall index does not indicate any drastic drop in prices of food articles but only means that the sustained increase in prices has abated. In the present week vegetable prices eased by four per cent while oils were cheaper by about two per cent. The index for "all commodities" (base:1981-82=100) during the week declined by 0.2 per cent to 358.9 (P) against 359.7(P) in the previous week.

However, inflation based on consumer price index for industrial workers (CPI-IW) is ruling at a huge 18.6 per cent in October compared to 16.3 per cent in September. Based on WPI, inflation was about eight per cent in October. Meanwhile, the inflation based on the final index for the week ended September 26, the latest available, stood at 8.8 per cent against 8.7 per cent estimated provisionally. The final index for all commodities for the week stood at 357.1 compared to the provisional figure of 356.6 points.

During the current week indices of "primary articles" and "manufactured articles" declined mainly on account of an easing of price rise in "food articles" and "food products".

Index for the third major group "fuel, power, light & lubricants" remained unchanged after rising marginally to 381.7 points last week due to higher power tariff.

In the reference week, prices of vegetables (4 per cent) raw silk (3 per cent), rice bran oil (9 per cent), solvent extracted groundnutoil and groundnut oil (2 per cent each), woollen yarn (7 per cent) and caprolactum (7 per cent) fell.

However, gaskets (15 per cent), radiators (7 per cent), castor oil (2 per cent), gingelly oil (2 per cent), fodder (7 per cent), castor seed (5 per cent) and wheat and jowar were costlier during the week. Index for primary articles fell 0.6 per cent to 395.2 from 397.4 points due to a 1.2 per cent fall in food articles index.