The wholesale price index rose 0.7 per cent in the 12 months to Sept. 26,lower that previous week8217;s annual rise of 0.83 per cent,government data showed on Thursday.
It compared with a median forecast of a 0.99 per cent rise in a Reuters poll.
The annual inflation rate was 12.08 per cent during the corresponding week of 2008.
Private sector economists have said inflation could reach as high as 8 per cent by the end of March.
A policy adviser said on Monday inflation could be around the comfort level of 5 per cent by the end on 2009/10 with easing of speculative pressures on food prices.