The recent 0.07 per cent increase in the inflation rate was on account of buoyancy in the prices of vegetables, rice, raw rubber, gingelly seed, copra, linseed, castor seed, copper, brass rods, automobile parts and trucks and bus chassis. But bajra, kardi seed, maize and cotton seed oil became cheaper during the week under review. However, it was orbiting much above the eight per cent mark at 8.32 per cent during the corresponding week last year.

It had been maintaining its 17-year low for the 16th week in succession since June 19 when it plummeted to 2.53 per cent. It had fallen below the two per cent mark twice in this year. After remaining static for two consecutive weeks at 2.02 per cent on September 11 and 18, it fell below the two per cent mark to touch 1.88 per cent on September25.

Though it had clipped off 3.20 per cent in 40 weeks since January this year, it had been behaving in somewhat erratic manner.

It never touched the double digit mark for more than four years since April 15, 1995 when it stood at 9.90 per cent (final). Many financial experts had felt that the recent 40 per cent hike in diesel prices by the government was likely to boost the inflation rate by the year end. This puts immense burden on the common man's pocket due to transport and other related costs.