Inflation fell below 12 per cent mark at 11.99 per cent for the first time in the last two months as some food items turned cheaper amidst expectations of Reserve Bank of India maintaining status quo in interest rate policy in mid-term review later this month due to inflationary pressures.
Inflation declined by 0.15 per cent during the week ended September 20 from 12.14 per cent in the preceding week even as manufactured index went up.
Inflation was 3.51 per cent during the corresponding week of the last year.
Official sources said RBI is likely to keep policy rates intact and is not expected to cut even mandatory deposit requirements for banks (CRR), despite liquidity problems.