A glimmer of hope came the way of worried policy makers after the inflation rate fell for the first time in several weeks. The government said these were early signs of moderation in the price line.
Latest price data showed that wholesale prices based inflation for the week-ended August 16 declined to 12.40 per cent, down from the previous week’s 12.63 per cent.
The fall was largely due to a dip in prices of vegetables, meat and cement, which the Finance Ministry described as "early signs of moderation" in prices.
"There are some early signs of moderation of inflation," the Finance Ministry said in a statement.
In the primary articles group 21 out of total 98 articles have shown decline in prices and there was no increase in prices of another 48 articles.
The last time inflation fell was when it dipped from 11.91 per cent to 11.89 per cent in the week ended July 12.