The rate of inflation declined to 6.87 per cent in July this year, its lowest level since January, 2010, as the rate of price rise in the food articles category eased. But price pressure remained on potatoes, pulses and rice, and manufactured items. Inflation, as measured by the Wholesale Price Index, had stood at 7.25 per cent in June, this year, and at 9.36 per cent in July last year.Overall, food inflation declined to 10.06 per cent in July, from 10.81 per cent in June. The rate of price rise for manufactured products stood at 5.58 per cent in July this year, against 5 per cent in June. In the food articles category in July, potatoes turned expensive by 73 per cent, rice by 10.12 per cent, cereals by 8.29 per cent, and pulses by 28.26 per cent, on an annual basis. However, inflation in fruits was negative, at minus 0.15 per cent, and for onions at minus 9.81 per cent.Lifted by data showing that inflation eased in July, the Sensex at the Bombay Stock Exchange rebounded from initial losses, to stand 97 points, or 0.5 per cent in positive territory, at 17,727 in afternoon trade, a short while ago. Earlier in the morning, however, the Sensex had declined 20 points, to 17,613, on mild profit-booking by investors.Key stock indices in Japan, Singapore, Taiwan, South Korea and Hong Kong were up by between 0.3 percent and 1.3 percent, today. The US Dow Jones Industrial Average had ended 0.3 per cent lower in yesterday's trade.The rupee depreciated by 29 paise to 55.63 against the dollar in early trade today, extending losses for the third day in a row on the Interbank Foreign Exchange on continued demand for the American currency.The rupee had lost 6 paise to end at 55.34 against the dollar in yesterday's volatile session