Inflation, based on the wholesale price index (WPI), fell by 0.21 percentage points to 7.64 per cent (provisional) from 7.85 per cent (p) in the previous week. However, it was still much higher compared to 4.10 per cent during the same week last year. Inflation has fallen by more than one percentage point since November first week when it touched a three year high of 8.85 %.

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

Inflation had risen to 8.85 per cent on account of unprecedented rise in prices of vegetables and edible oils in September and October this year. In the present week, vegetables prices eased by three per cent while edible oils were cheaper by about one per cent. The index for "all commodities"(base: 1981-82=100) during the week declined by 0.2 per cent to 357.9 (p) against 358.5 (p) in the previous week.

However, inflation based on consumer price index for industrial workers (CPI-IW) for the latest month, October was still ruling at an all time high of 18.6 per cent. The previous highest inflation on CPI-IW was 16.3 per cent in September this year and 16.1 per cent in January 1991. DCompared to 18.6% in October, the average inflation on WPI during the same month was eight per cent.

Meanwhile, the inflation based on the final index for the week ended October 10, the latest available, stood at 8.07%. as against 8.10% estimated provisionally.