The prices of tea, fish, mesta, sunflower, fodder, raw silk, groundnut, essential oils and zinc witnessed a considerable hike in their prices while maize, fruits, raw rubber, soyabean, solvent extracted groundnut oil, rice bran oil, ply wood commercial planks and steel wires became cheaper during the week under review.

It had maintained its 17-year low for the 14th consecutive week since June 19 when it dropped to 2.53 per cent. On July 3, it plunged below the two per cent mark for the first time in 17 years when it touched 1.83 per cent.

It had never touched the double digits mark for more than four yearssince April 15, 1995, when it stood at 9.0% (final). The recent rise in diesel prices by the government and the upward swing in world oil prices could push up the inflation rate in coming months.

The government had jacked up the administered prices of diesel prices which would help in boosting the transportation and other related costs. An expert had said that increase in petroleum products prices would have impact on the prices of essential commodities. In a report, ICICI Securities felt that the inflation rate was likely to rise from November this year mainly due to the jump in the prices of petroleum products. But it opined that it was not likely to go beyond five per cent by this fiscal. The inflation rate for the last couple of months had been witnessing a downward trend on account of record production of foodgrains. Another factor which attributed for the inflation rate to come down was the sluggish demand in the industry.

The inflation based on the consumer price index for industrial workers whichis the real barometer of the economy saw a minute fall of 0.01 per cent.