Mumbai: The annual rate of inflation based on the wholesale price index eased to 4.07 per cent for the week ended February 2 from 4.11 per cent in the previous week, mainly due to fall in prices of some food items, jet fuel, and select manufactured goods.

The inflation rate stood at 6.58 per cent for the corresponding week last year.

During the week under review, prices of fruits and vegetables, arhar, masoor, condiments and spices declined, while fish-marine and maize became dearer, official figures showed.

In the fuel, power, light and lubricants category, furnace oil, aviation turbine fuel and naphtha became cheaper, while light diesel oil moved up 5 per cent.

Among manufactured products, khandsari, and bread and buns moved up while prices of leaf tea, ghee and maida came down.

Although inflation remained below RBI's upper limit of 5 per cent so far this fiscal, the Reserve Bank yesterday said that the rate was high by global standards and needs to be brought down further.

"Our inflation is still high by world standards and it needs to be brought down further," RBI deputy governor Rakesh Mohan had said.

The RBI's objective has been to ensure liquidity, while still keeping inflation and interest rates low, he had said.

Prime minister Manmohan Singh also today emphasised the need for keeping inflation under check and said it has been an important policy stance of his government to ensure inclusive growth.