Annual Inflation based on wholesale price index fell 1.3% for the week ending June 20 as compared to 1.14% in previous week as per the government data release today.

The fall was marginally smaller than a median forecast of a 1.35% fall according to a Reuters poll.

The annual inflation rate was 11.91% during the corresponding week of 2008.

Prices of food articles like fruit and vegetables rose by 0.6% and non-food articles by 0.3%. Among non-food articles the prices of fodder, groundnut seed and raw wool rose by 4%, 2% and 4%, respectively. However, prices of food items like tea and fish marine declined by 4% each, and jowar by 3%.

The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is released weekly.