The wholesale price index-based Indian inflation rate declined further to -1.55 per cent for the week ended June 27, against -1.30 per cent a week ago, remaining in negative zone for the fourth straight week. It should be recalled that inflation rate was at high of 12.03 per cent in the corresponding period last year.

However, there is no respite for customers who are waiting for essential food commodities to turn cheaper. Prices of vegetables, fruits, and other household food items are still very high, putting extra burden on common man's pocket. Food item prices are expected to rise further, as the below normal monsoon in the current season may lead to a decline in food grain production in the country, especially in Punjab, Haryana and Western UP.

Prices of manufactured products, having significant weight age in WPI, reported a fall during the week. Experts believe that inflation rate would soon turn into positive zone, due to the recent increase in prices of petrol and diesel by Rs. 4 and Rs. 2 a litre, respectively.

Chief Economic Advisor, Arvind Virmani, said: ". the wholesale price index (WPI) inflation will go down for a while and [then] it will come up. At the end of March this year [2009-10], this could be in the range of 2 to 4 per cent".