Mumbai: The annual rate of inflation based on the wholesale price index (WPI) increased further to 6.11 per cent, for the week ended January 20, from 5.95 per cent during the previous week. The rise has occurred following a continuing surge in prices of food articles, including pulses, fruits, vegetables and eggs.

The rate of inflation had touched 6.12 per cent during the week ended January 6 this fiscal, but had come down to 5.95 per cent the following week.

The current increase in overall inflation rate is attributed to a sharp rise in the prices of food articles, including pulses like arhar and moong, fruits, vegetables, eggs, textile, wool and sugarcane along with those of metal and paper products.
The wholesale price index for all commodities for the week ended January 20, rose by 0.1 per cent to 208.5 from 208.3 for the previous week.

Data released by the government showed that index of food articles, which mainly 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, maize and marine fish also increased by one per cent.

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 January 31 will take some time to dampen the rising prices due to a time lag factor, government sources pointed out.

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