Inflation up at 0.92 per cent; prices of food items soften

A vendor arranges vegetables at a market in Jammu. File photo/Reuters

While prices of non-processed food items declined by 1.67 per cent on weekly basis, the rates of such articles were higher by 13.34 per cent compared to the same week last year.

Inflation could have been much higher but because of a high base of 11.49 per cent a year ago it is still below one per cent.

Softened food prices on weekly basis might give some relief to RBI to hold policy rates in its October 27 monetary review.

Most analysts including Prime Minister's Economic Advisory Council Chairman C Rangarajan expect inflation to breach RBI's projection of 5 per cent by this fiscal end.

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