Mumbai:  The annual rate of inflation based on the wholesale price index further declined marginally to 12.34 per cent for the week ended 23 August from 12.40 per cent the week ago, official data showed.

The decline - the second in as many weeks - has largely been attributed to a marginal easing of prices of essential goods such as fruits, vegetables, eggs, meat and fish.

The index for the primary articles group (which has a weight of 22.02 per cent on the WPI) declined by 0.4 per cent.

The index for 'food articles' group slipped by 0.8 per cent due to lower prices of fish-marine (down 13 per cent), fruits and vegetables (down 2 per cent) and jowar, arhar and urad (down 1 per cent each). However, the prices of tea moved up by 3 per cent and those of eggs and condiments and spices rose by 1 per cent each.

The index for 'non-food articles' group, however, advanced by 0.4 per cent on account of higher prices of raw silk (up 14 per cent), raw cotton (up 3 per cent) and copra (up 1 per cent). However, the prices of castor seed and raw rubber eased 1 per cent each.

The index for the `fuel, power, light & lubricants group (which has a weight of 14.23 per cent on the WPI) remained unchanged at its previous week's level.

The index for `manufactured products group' (which has a weight of 63.75 per cent on the WPI), however, remained a concern, rising by 0.2 per cent compared to the previous week.

The index for 'food products' group jumped by 0.2 per cent due to higher prices of imported edible oil (up 2 per cent) and oilcakes (up 1 per cent). However, the prices of rice bran oil fell by 2 per cent and those of cottonseed oil and rape & mustard oil declined by 1 per cent each.

The index for 'paper & paper products group' climbed by 0.2 per cent, driven by higher prices of newsprint (up 1 per cent).

The finance ministry attributed the moderation in inflation to a fall in the prices of rice, most of the pulses and mustard oil.

The decline in inflation for a second successive week, although modest, failed to lighten market sentiment amidst continued fears that the central bank would hold on ti its tight monetary stance as underlying inflationary pressures remained unchanged.