Mumbai: The annual rate of inflation based on the wholesale price index (WPI) declined to 3.52 per cent - the lowest in the past 17 months - during the week ended September 1, from 3.79 per cent a week ago.

The decline in inflation rate was due mainly to a fall in the prices of minerals, fuels and some manufactured products, data issued by the Central Statistical Organisation (CSO) showed.

The inflation rate was at 5.34 per cent during the corresponding week of the previous year.

This is the third week in a row that inflation has remained below the four per cent mark.

The food articles group as a whole witnessed an increase although prices of bajra, eggs, maize, moong, condiments and spices declined.

Prices of power, light and lubricant group also declined by 0.1 per cent, largely due to lower prices of aviation turbine fuel and furnace oil.

Amongst manufactured items, prices of cottonseed oil, rice bran oil, imported edible oil, zinc ingots and few other commodities declined.

But the low headline inflation rate alone does not guarantee the government peace of mind, as prices of some food articles like fruits have risen by a whopping 17.7 per cent.

Inflation still poses a downward risk as crude oil touched its lifetime high of $80 per barrel on Thursday. But in the domestic market aviation turbine fuel turned cheaper by three per cent and furnace oil by one per cent during the week under review.

also see : General reports on Economy