India's inflation rate eases to 11.89 percent but RBI move seen

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The inflation rate was lower than the median forecast of 12.03 percent in a Reuters poll of analysts.

According to government data, the primary articles group, which has a weight of 22.025 on the index, rose 0.6 percent, driven by prices of food articles that rose 0.6 percent.

Manufactured products group, which has a weight of 63.749 on the index, rose marginally by 0.05 percent. Though prices of food products rose 0.1 percent, prices of textiles fell by 0.1 percent.

Fuel, power, light and lubricants group, which carry a weight of 14.226 on the index, remained unchanged.

While prices of imported edible oils, tea, cotton seed oil, groundnut oil, potato, maize, marine fish and spices decreased marginally, prices of certain other commodities like coffee, fruits and vegetables, mutton and certain pulses like urad, moong and arhar have became expensive during the week.

Commenting on the data, the finance ministry said, "Out of 98 primary articles, the prices of 10 items have shown a decline, while 54 articles showed no increase."

It also noted that among the manufactured products, 219 articles out of total 318 commodities showed no increase in prices during the week, while nine items became cheaper.

The finance ministry also said that prices of all the 19 articles in the fuel and power commodity group did not rise. It added that the annual inflation rate for 30 essential commodities continued to be range-bound, standing at 5.82 percent for the week ended July 12.

"Inflation on a week-on-week basis had continued to remain stable," the ministry said.

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