Mumbai: The annual rate of inflation based on the wholesale price index (WPI) surged to 6.46 per cent during the week ended 3 March, from 6.10 a week ago with rising prices of vegetables and a post-budget hike in cement prices.

Vegetable prices soared by 7 per cent while cement became costlier by 4.4 per cent, latest post-budget official data showed.
The current rise in inflation rate is in some part due to the base effect, since inflation stood at just 3.86 per cent in the corresponding week last year, and in part due to the latest budget, which imposed dual excise duties to rein in cement prices.

Prices of fish-marine, maize, oil cakes, flour, fuel items, copra, bran oil, zinc and insulated cables moved up.

However, prices of fruits, tea, poultry chicken, urad, spices and condiments, polyester yarn and sugar eased.

Cement manufacturers raised prices after the budget hiked excise duty by Rs200 from the earlier level of Rs400 a tonne for a bag of 50kg priced above Rs190. For cement sold below Rs190, excise was reduced by Rs50.

The inflation data could further add to the worries of the government, which, together with the RBI, has announced a number of measures to rein in surging prices.