For the first time after the government took drastic steps to rein in runaway price rise, inflation slipped to 7.14 per cent in the week ended April 5, 2008.

In the previous week inflation had surged to a 40-month high of 7.41 per cent, mounting pressure on the Reserve Bank to further tighten money supply in its forthcoming annual credit policy later this month.

The wholesale price-based inflation, which still stands at unmanageable levels, slipped a bit as prices of some fruits and vegetables, pulses, cereals, condiment and spices, and some manufactured items dropped a bit. Prices of milk and maize too softened a bit.

Some of the drop in prices has come about because of the move by some states to do away with octroi, etc on essential commodities.

The high inflation may prompt RBI to take tough monetary measures to ease out inflationary pressure in its annual credit policy, scheduled to be announced on April 29.

On Thursday, Prime Minister Manmohan Singh had even stated that high food prices may hurt economic growth and economic reforms process.

• Inflation, the silent killer!