Inflation dips to 3.92 per cent

Agencies

New Delhi: Inflation figures based on the official Wholesale Price Index (WPI) showed a fall to 3.92 per cent for the week ended February 7 from 4.92 percent a week before.

Inflation rates declined primarily due to falling prices of manufactured items.

The WPI for all commodities declined 0.2 percent to 228 (provisional) from 228.4 (provisional) the week before.

During the week, prices of manufactured items such as sugar, imported edible oil and textile items such as cotton yarn got cheaper.

While prices of chemical products, iron, steel and cables dropped, prices of some food items such as pulses, fruit and vegetables and maize continued to increase.

Fuel items too became expensive during the week on account of higher prices of naphtha and furnace oil, which went up by 10 per cent and 5 per cent respectively, despite fall in prices of crude oil.

The fall in the wholesale price index is expected to prompt the Reserve Bank of India to cut key policy rates.n indication on this was made by the RBI Governor D Subbarao in Tokyo on Wednesday.