Continuing its downward journey, the wholesale price index based inflation rate touched seven year low of 3.03% for the week ended February 21. The annual inflation rate was at 3.36% a week before while at 5.69% during the same period last year.

Decline in prices of food articles, metals and transportation articles helped to reduce the inflation at seven year low, a big respite to UPA government, which is going to face public opinion in the forthcoming general elections in April-May period.

The Reserve Bank had earlier forecasted that inflation would ease to 3 per cent by the end of March. Meanwhile, economists believe that inflation may further decline in coming months due to decrease in food items and expectation of bumper crop in the country in the coming crop season. Food prices fell to 8.24% in the reporting period from 10 year high of 11.5% in the starting of year following decline in prices of fruits, vegetables and certain cereals.

Meanwhile, data provided by central statistical organization maintains Indian economic growth rate at 5.3% in December quarter, indicating severe impact of global slowdown on country's economic health.

UPA Government, on its part announced, slash in excise duty from 10% to 8% under the special economic package besides timely revision of key interest rates by the apex bank to propel the economic growth rate. However, time would decide the impact of actions taken by government.