Mumbai: For the week ended September 1, inflation rate, which is based on the wholesale-price-index dangled to 3.5 per cent as compared to 3.79 per cent in the previous week.

In late January, annual inflation jumped to a more than two-year high of 6.69 per cent, but relented after the RBI stiffened plan and the administration slash duties on a slew of commodities in order to chill prices.
In July, the central bank brought up banks' cash reserve ratio (CRR) to 7.0 per cent from 6.50 per cent in a bid to clear up excess cash, which could fuel rising prices (inflation). It held its temporary lending price stable at the July assessment after advancing it five times since mid-2006.

The wholesale price index is more strictly observed than the consumer price index (CPI) as it comprises a higher number of products and is published on a weekly basis.