WPI at three-year low of 7.18 % in December

Inflation based on wholesale price index for December 2012, slowed to its lowest level in three years, declining marginally to 7.18 per cent from 7.24 per cent in November despite a rise in the prices of most food items, including rice, wheat, pulses and potato.

The wholesale price index (WPI) stood at 7.74 per cent in December 2011.

Build up of inflation in the financial year so far was also lower at 4.72 per cent against 5.22 per cent in the corresponding month of the previous year.

However, with the inflation level still above the Reserve Bank's comfort levels, it is unlikely to lead to a cut interest rates in the RBI's policy review due on 29 January.

Inflation rate for the `primary articles' group declined by 0.4 per cent during December 2012.

Among primary articles, the rate of inflation for the 'food articles' group declined 0.5 per cent in December due to lower price of coffee, fruits and vegetables and arhar, gram and fish-marine, masur and urad. However, the price of bajra, barley, maize, rice, tea, ragi and poultry chicken, jowar and fish-inland and wheat, moong, mutton and condiments and spices moved up.