Inflation declined to 4.36 per cent during the week ended July 21 as compared to 4.41 per cent for the previous week as some essential food items like pulses, fruits and eggs turned cheaper.

However, prices of certain other food items like vegetables and most manufactured products rose. Fuels like naphtha also became dearer.

The wholesale prices-based inflation stood at 4.72 per cent for the corresponding period a year ago.

The Reserve Bank of India [Get Quote] in its July 31 monetary policy review has raised the rate of mandatory cash deposits that banks have to keep with it by 0.5 per cent to 7 per cent. It, however, retained its projection for inflation at five per cent for this fiscal and 4-4.5 per cent for the medium term.