Inflation plunges to historic low of 0.44 percent; deflation feared, rate cuts seen

However, among the food articles, the prices of moon and fish (marine) jumped 2 percent each while, among the non-food articles, the prices of raw rubber climbed 3 percent.

The index for Fuel, Power, Light & Lubricants Group (which has a weight of 14.23 percent on the WPI) eased 0.8 percent compared to the previous week due to lower prices of aviation turbine fuel and electricity for agriculture (down 8 percent each), light diesel oil (down 7 percent) and bitumen (down 2 percent).

However, the prices of naphtha and furnace oil gained 3 percent each while those of electricity for domestic, commercial and industry and railway traction moved up 1 percent each.

The index for Manufactured Products Group (which has a weight of 63.75 percent on the WPI) remained unchanged compared to the previous week.

Products, which witnessed noticeable decline in prices were woolen yarn (down 6 percent), newsprint (down 2 percent), oxygen gas in cylinder (down 14 percent), liquid chlorine (down 3 percent) and acetylene and titanium dioxide (down 2 percent each).

However, the prices of computer & computer-based systems increased a significant 7 percent.