On a weekly basis, however, the upward movement of prices was marginal as the wholesale price index (WPI), which is the basis for measuring inflation, rose only 0.12 per cent to 240.7, up from previous week's figure of 240.4. Last week, the inflation rate had witnessed one of the sharpest jumps in the past few weeks when it had gone up straight from 12.01 to 12.44.

Almost immediately after the data was released, the finance ministry issued a statement saying that “prices of essential commodities such as food grains, edible oils, vegetables, dairy products and some other commodities including kerosene, soap and safety matches have more or less stabilised”. The annual inflation rate for these 30 essential commodities stood at 6.74 per cent as against 6.54 per cent in the previous week.

The statement went on to highlight the fact that the prices of a majority of commodities in all the major groups have either declined or remained unchanged. The index for the ‘primary articles’ group rose very marginally to 249.6 from 249.5 while that for the fuel group remained unchanged at 380.4. It was only the ‘manufacturing products’ group that witnessed a significant rise in prices of 0.2 per cent.

Analysts are, however, optimistic that inflation is peaking and will soon start moderating. Speaking to The Indian Express, DK Joshi, principal economist with CRISIL, said, “With the softening of international crude oil and commodity prices, inflation is expected to peak some time in September. Industrial production has already started decelerating, which shows that consumer demand is slowing down. We may, however, face some food-price inflation as a result of poor monsoons in some parts of the country.”

Behind The figure

• The finance ministry says prices of essential commodities such as food grains, edible oils and vegetables, and others such as kerosene oil have more or less stabilised. The prices of commodities in all the major groups have either declined or remained unchanged

• The annual inflation rate for these 30 essential commodities stood at 6.74 per cent as against 6.54 per cent in the previous week

• The index for primary articles rose marginally to 249.6 from 249.5

• The fuel group index did not change at 380.4

• The manufacturing products index witnessed a significant rise in prices of 0.2 per cent