Inflation falls to 5%

A sharp fall in iron ore prices could affect only a marginal decline in inflation to 5.23 per cent for the week ended March 12 since essential commodities like vegetables and fruits and several manufactured products became costlier.

The widely-tracked point-to-point wholesale price index inflation shed 0.07 per cent from the previous week's level of 5.30 per cent despite costlier food and non-food articles and other minerals.

But it was much higher than 4.78 per cent in the previous year period. The WPI rose marginally by 0.1 per cent to 189.1 points even as prices of fuel products remaining unchanged despite high oil prices in the international markets.

The index was 179.7 points in the year-ago period. With domestic revision in oil prices long due, market apprehensions are that it might be hiked, which would have ripple effect in inflation as well as interest rates.