New Delhi, Dec. 28 (PTI): Lower prices of fruits, vegetables and textile products brought down inflation to 3.45 per cent for the week ended December 15 against 3.65 per cent a week ago, But high oil and food prices in the international market are still a cause for concern.

The wholesale prices-based index stood at 5.73 per cent in the corresponding week of the previous year.

During the week ended December 15, prices of fruits and vegetables declined by 2 per cent, while those of textile items fell by 5.9 per cent and cotton yarn by 7.7 per cent.

However, prices of poultry chicken went up by 2 per cent and those of urad, condiments and spices by 1 per cent each.

The prices of beverages, tobacco, and tobacco products rose by 3.3 per cent as cigarettes (8 per cent) and potable country liquor (6 per cent) became dearer.

On chances of cuts in interest rates, HDFC Bank’s chief economist Abheek Barua said, “Consumers are unlikely to get any relief in the near future as there is little chance of interest rates coming down due to high inflationary expectations.”