In what comes as a big relief to Prime Minister Manmohan Singh government, India's annual rate of inflation dipped marginally to 11.89 per cent for the week ended July 12 as compared to 11.91 per cent for the week before.

The wholesale price index (WPI) released by the ministry of commerce and industry on Thursday showed a rise of 0.6 per cent in the prices of primary food articles.

The prices of coffee went up by eight per cent while those of fruits and vegetables by two per cent.

Though the index for fuel, power and light showed no increase, manufactured products rose 0.05 per cent.

The index for basic metal, alloys and metal products rose marginally to 298.9 from 298.8 due to higher prices of lead ingots (six per cent).

The final WPI for week ended May 17 for all commodities stood at 230.8 as compared to 229.6 (provisional).

Annual rate of inflation, based on final index and calculated on point-to-point basis stood at 8.66 per cent as compared to 8.1 per cent (provisional).

In a statement, the finance ministry said, "Inflation on a week on week basis had continued to remain stable.”

Prices of essential commodities, which include food grains, pulses, edible oil, vegetables, dairy products as well as kerosene have more or less stabilised.