Friday, December 24 2004 12:47 Hrs (IST) - World Time -

New Delhi: Continuing its fall for the third consecutive week, inflation dipped to 6.73 per cent for the week ended December 11, mainly due to cheaper vegetables and fuels, after remaining over 7 per cent since July.

The point-to-point Wholesale Price Index (WPI) inflation was down by 0.29 per cent, to a 21-week low in the latest reported week, from the previous level of 7.02 per cent. It was 5.80 per cent in the year-ago period.

The Reserve Bank, in its report yesterday, said with the easing of oil prices and improved Rabi crop, inflation was expected to moderate over the coming months in line with 6.5 per cent projection made in the mid-term policy review and Finance Minister P Chidambaram's assertion that "worse is over" on the price line.

Under impact of fiscal and monetary measures taken by the Government and the RBI, the WPI fell by 0.2 per cent to 188.7 points even as heavy-weighted manufactured products became costlier. The index was 176.8 points in the previous year period.

Government revised upwards inflation to 7.21 per cent for the week ended October 16 as compared to the provisional level of 7.10 per cent, while the final WPI stood corrected at 188.8 points in mid-October as against the provisional figure of 188.6 points.

The index of Primary Articles' group was down by 1 per cent to 186 points due to cheaper food and non-food items. It was 181.2 points in the year-ago period.

Food Articles' group index fell by 1.3 per cent to 185.4 points due to lower prices of vegetables (10 per cent), fish marine (seven per cent), ragi and fish-inland (two per cent each) and fruits, jowar and tea (one per cent each), even as urad and bajra prices were up by one per cent.

The index of Non-Food Articles' group declined by 0.2 per cent to 180.7 points owing to lower prices of niger seed and logs and timber (four per cent each), raw cotton (three per cent) and castor seed (one per cent).

But prices rose for raw rubber (six per cent), soyabean (four per cent), raw wool (three per cent), raw jute (two per cent) and tobacco and groundnut seed (one per cent each).

Fuel, Power, Light and Lubricants' group index fell by 0.1 per cent to 288.8 points due to three per cent decline in the price of furnace oil and naphtha (one per cent). The index was 255.9 points in the previous year period.

During the week under review, the global crude oil futures plunged to a five-month low of less than $ 41 a barrel, prompting OPEC to decide on a cut in production from next year to stem sliding prices.