labels: economy - general
Inflation again rises to 6.11% news
02 February 2007

New Delhi: Inflation, based on the wholesale price index, has again increased to 6.11 per cent for the week closing 20 January, as compared to 5.95 per cent during the previous week. Although, inflation had touched 6.12 per cent during the week ending 6 January, this fiscal it had come down to 5.95 per cent in the following week.

Data released by the government today revealed that index of food articles, which severely affects the common-man, rose by 0.4 per cent to 214.6 per cent due to higher prices of eggs, condiments and spices (4 per cent each), pulses like arhar (2 per cent), moong and masur (1 per cent). The prices of fruits and vegetables, besides maize and fish-marine also increased by one per cent.

The sharp increase in prices of food articles including pulses like arhar and moong, fruits, vegetables, eggs, textile, wool, sugarcane coupled with the prices of metal and paper products have led to the increase in overall inflation.

The cut in customs duty on edible oil, cement and other manufacturing products, along with the RBI's decision to tighten the liquidity in the market announced on 31 January, will take some time to dampen the rising prices due to a time lag factor, said government officials.

The wholesale price index for all commodities for the week ended January 20, 2007, rose by 0.1 per cent to 208.5 from 208.3 for the previous week.

Notably, inflation was just 3.86 per cent during the week ended January 7, 2006, and 4.24 per cent as on 21 January, last year.

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Inflation again rises to 6.11%