New Delhi - India's inflation rate fell sharply 6.84 per cent for the week ending December 6, down from 8 per cent the week before, government data showed Thursday.

The inflation rate, linked to India's wholesale price index, was at its lowest in nine months primarily because of cuts in petrol and diesel prices announced by the government recently.

Inflation in India has been on the decline since it hit its peak of 12.91 per cent in the week what ended August 2. The rate during the same period last year was 3.84 per cent.

Statistics released by the Commerce Ministry showed that the index for fuel, power, light and lubricants fell by 3.7 per cent. Prices of petrol, aviation fuel and furnace oil fell between 7 and 23 per cent.

Prices of food items including fruit and vegetables as well as steel, pig iron and some other metals declined during the week.

The falling inflation figures have raised hopes of further rate cuts by the Reserve Bank of India (RBI).

In the first week of December, the government announced a 4-billion-dollar stimulus package while the RBI cut key short-term lending and borrowing rates to infuse more liquidity into the financial system.

The data on inflation was expected to bring cheer to the United Progressive Front government as India gears up for its general elections scheduled to be held between April and May next year. (dpa)