The wholesale price index continued to stay in the negative territory for the eighth consecutive week, but there is no relief to common man as food inflation is still high, making it difficult for poor people to make both ends meet. The wholesale price index fell 1.58 per cent, crossing the median forecast of 1.5 per cent fall in a Reuters' poll.

The steep rise in essential food commodities may politically cost very heavily to the incumbent government, going to face assembly polls in Haryana, Maharashtra and most probably in Jaharkhand, currently under president rule.

The annual inflation rate stood at -1.58% for the week ended July 25, as compared to 12.53% a year ago. Similarly, food inflation, currently stood at -1.58%, is set to become double digits as there is no respite from rising food prices.

Blaming 'poor monsoon' as the cause of increase in vegetable and milk prices, Union Finance Minister, said: "The government is responsible... the government is responsive. We are sensitive to it (price rise) ... as and when appropriate policy measures are needed, they will be taken."