According to the latest data released, the inflation based on the wholesale price index (WPI) has fallen to 6.62 per cent, which is its lowest level since December 2009, in January, 2013.

The data released by the Ministry of Commerce and Industry on Thursday showed that the inflation fell to its lowest level in three years even as high prices of onions in the country pushed up the food inflation to 11.88 per cent.  The data showed that the January was the fourth straight month for a fall in the WIP in the country.

Economists are debating over which index if more accurate indicated of the inflation; the 11.88 per cent or the consumer price index (CPI).  Food items account for 50 per cent of the CPI while tis weightage in WPI is just 20 per cent.  The index have move together in the previous year but recently the gap between the two have widened.

According to the data released by the Ministry of Statistics and Programme Implementation, the inflation based on the CPI increased from 10.56 per cent in December to 10.79 per cent in January.  The government had recorded a WPI based inflation of 7.23 per cent and CPI inflation of 7.65 per cent during January of the previous year.

Prime Minister's Economic Advisory Council Chairman, C Rangarajan said that he expects the inflation to fall to 6.5 per cent by March.