Mumbai: The annual rate of inflation based on the wholesale price index remained unchanged for the week ended December 29, 2007, at its previous week's level of 3.50 per cent.

The inflation rate stood at 5.89 per cent a year ago.

The index for food articles group declined by 0.3 per cent due to lower prices of fruits and vegetables, which fell by two per cent and prices of fish-marine, moong and urad which fell by one per cent each over the previous week, official data released today showed.

The prices of food products in the manufactured commodities' group, however, rose by 0.9 per cent due to jump in prices of rape seed and mustard oil, which went up by five per cent. Prices of oil cakes went up by four per cent and butter and imported edible oil were dearer by 2 per cent. Prices of dairy products rose marginally by 0.7 per cent.

The marginal fall in prices of primary food articles have in fact helped keep inflation rate unchanged at the previous level.

This should give elbowroom for the Reserve Bank to keep interest rates unchanged despite high crude oil prices, say analysts.