Inflation eases further to 0.18% on higher base

Inflation eased to 0.18 per cent, the lowest ever in the last three decades, even as prices of food articles like pulses, cereals and vegetable hardened during the week ended April 4.

The wholesale price-based index declined by 0.08 per cent against 0.26 per cent in the previous week. The decline was mainly due to higher base effect and falling prices of some manufactured products.

The inflation stood at 7.71 per cent in the same week a year ago.

The consistent decline in inflation but rising food prices present a difficult choice before the RBI to cut policy rates or not even as the industry clamours for easing of interest rates.

During the week, prices of food items like vegetable, pulses and imported edible oil were expensive during the week.

Even the jet fuel, naptha and other fuel items were dearer during the week.