New Delhi: Overcoming a steep 11 per cent hike in vegetable prices, inflation fell marginally by 0.02 per cent to 7.94 per cent for the week ended August 14 due to a sharp fall in prices of minerals.

Analysts predict a further fall in inflation in the coming weeks as the global crude prices have started declining after touching nearly 50 dollar a barrel mark that prompted the Government to slash excise and customs duties on petroleum products.

However, the impact of the ongoing truckers' strike could put some pressure on the price line across the board, they added pointing out that these developments are yet to be accounted for computation of inflation for the week beginning August 15.

The latest fall in point-to-point Wholesale Price Index (WPI) inflation has not factored the cut in duties on petrol, diesel, kerosene and LPG, and steel announced on August 18 and 20 and the impact of the truckers' strike over 10 per cent service tax.

"As of now, the impact of the strike is marginal. But if it persists, it could have serious effect on the price front," a mutual fund analyst said.

In view of rising price level, Prime Minister Manmohan Singh had constituted a Cabinet Committee on Prices to regularly monitor the prices of commodities.

Moreover, the Centre yesterday (Aug 26, 2004) raised the borrowing limit under Market Stabilisation Scheme (MSS) to Rs 80,000 crore in a bid to suck in excess money and contain inflation.

The Finance Ministry raised the limit from Rs 60,000 crore to Rs 80,000 crore following a proposal from Reserve Bank.