After falling substantially in the previous week, inflation rose marginally by 0.06 per cent to 7.87 per cent for the week ended September 11 mainly due to costlier manufactured products including some edible oils.

The Wholesale Price Index inflation rose from 7.81 per cent in the previous week and it was 4.59 per cent in the year ago period.

The marginal rise in inflation comes amidst government's measures to rein in prices and RBI's Cash Reserve Ratio hike yet to take shape in the economy.

Analysts said the price level was expected to moderate by the end of this month when a 'partial' effect of the Reserve Bank of India's twin tranche hike in CRR plays its role.

RBI had hiked the CRR by 0.25 per cent to 4.75 per cent, effective from September 18, and by another 0.25 per cent to 5 per cent of net demand and time liabilities of banks with effect from October 2, expected to suck out Rs 8,000 crore (Rs 80 billion) excess liquidity.

During the latest reported week, the WPI rose by 0.1 per cent to 189.2 points even as prices of most of the primary articles fell while that of the fuels remained unchanged. The index was 175.4 points in the previous year period.

Government revised upwards the point-to-point inflation to 7.61 per cent for the week ended July 17 as compared to the provisional figure of 6.52 per cent.

The WPI stood corrected 186.6 points during the beginning of third week of July as against the provisional 184.7 points.

'Inflation 'stable', to start falling now'

The government on Friday said inflation, though up marginally to 7.87 per cent, should start coming down as it was now 'stable.'

"It is stable now. It has just gone up marginally by second place of decimal. It should start coming down from now," Chief Economic Advisor Ashok Lahiri said.

After falling substantially in the previous week, the point-to-point Wholesale Price Index inflation rose by 0.06 per cent to 7.87 per cent for the week ended September 11 mainly due to costlier manufactured products.

Market analysts said inflation would moderate by the end of this month once the 'partial' effect of RBI's hike in Cash Reserve Ratio comes into play.

The central bank had announced hike in CRR in twin tranches beginning September 18 and October 2, totally raising it to 5 per cent of Net Demand and Time Liabilities of banks to suck out excess liquidity of Rs 8,000 crore.