Inflation further declined to 3.52 per cent for the week ended September 1, compared to 3.79 per cent in the previous week, mainly due to falling prices of pulses, vegetables, condiments and spices besides some manufactured items.

The wholesale price-based inflation stood at 5.34 per cent in the correpsponding week a year ago. This is a third week in a row that inflation has remained below the four per cent mark, fuelling expectations that the Reserve Bank may soften the monetary policy.

Although the food article group as a whole witnessed an increase, prices of bajra, eggs, maize, moong, condiments and spices declined.

However, power, light and lubricant group declined by 0.1 per cent largely due to lower prices of aviation turbine fuel and funace oil.

Amongst manufactured items, prices of cottonseed oil, bran oil, imported edible oil, zinc ingots and few other commodities declined.