This is the lowest inflation since September 27, 1997,when it touched 3.47 per cent.

During the week, the annual inflation based on wholesale price index (WPI) fell by 0.33 percentage points to 3.53 per cent (provisional) from 3.86 per cent (P) In the previous week. The inflation rate was way higher at 7.04 per cent a year ago.

Inflation has been falling since the beginning of the current financial year despite increase in the overall index.

While the rate of increase in prices shed over one percentage point since April 3, 1999, the index for all commodities (base: 1981-82=100) rose from 354.7 to 357.5 during the period.

During the reference week, the index for all commodities, however, fell by 0.1 per cent to 357.5 (provisional) from 357.9 (P).

Meanwhile, the final index for the week ended April 10,the latestavailable, stood at 354.6 compared to 354.4 on the provisional index. The inflation based on the final index during the week was 4.23 per cent as against 4.17 per cent on provisional index during the week.

Compared to wholesale prices, inflation based on consumer price index was way higher in May. The inflation based on CPI for urban non-manual employees (CPI-UNME) was at 7.5 per cent during the month compared to monthly average WPI inflation of 3.8 per cent.

During the week, the index for all commodities moved down marginally on account of a fall in the index for primary articles.

However, the indices of the other two major groups, fuel, power, light & lubricants and manufactured products remained unchanged during the week.Prices of fruits (seven per cent) and ragi, raw jute andzinc (three per cent each) moved down substantially during the week, while sulphuric acid (eight per cent) and jowar, milk and coir fibre (three per cent each) became costlier.

Index for primary articles declined by 0.3 percent to 384.5 from 385.7 in the previous week on account of fall in the index for food articles.Food articles' index was down by 0.6 per cent to 452.5 from 455.1 due to fall in prices of fruits (seven per cent), ragi (three per cent) and bajra, maize, barley, gram, condiments & spices and tea (one per cent each).However, prices of jowar and milk (three per cent each),vegetables (two per cent) and rice, moong, urad and eggs (one per cent each) were up from the sub-group during the week.

Index for non-food articles rose by 0.2 per cent from 371.5 to 372.2 due to costlier coir fibre (three per cent), fodder (two per cent) and groundnut seed and raw tobacco (one per cent each).

Prices of raw jute (three per cent) and copra and castorseed (two per cent each) were cheaper during the week.

Index for fuel, power, light and lubricants remained unchanged at 390.5 for the sixth consecutive week.