labels: economy - general
Inflation rate climbs to 6.09 per centnews
20 April 2007

Mumbai: The rate of inflation based on the wholesale price index (WPI) rose to 6.09 per cent during the first week of the current fiscal from 5.74 per cent for the week ended March 31.

A spurt in prices of fruits, vegetables and some other items pushed up the wholesale prices-based inflation above the six per cent mark.

Prices of vegetables rose by a whopping 23 per cent during the week, while that of fruits marginally declined 0.1 per cent. Overall, prices of the fruits and vegetables category rose nearly 10 per cent.

Among other food products, prices of barley rose by five per cent, masur by three per cent and bajra, condiments and spices and urad by one per cent each during the week ended April 7.

However, prices of poultry chicken fell by six per cent and gram and fish-marine by 2 per cent each.

The intensity of surge in inflation will surely increase pressure on interest rates ahead of the RBI's annual monetary policy on April 24.

With essential commodities becoming dearer again, the government may have to take more steps to contain prices.

The government has already banned exports of wheat and pulses (except 'kabuli chana) as also futures trading in wheat, rice, tur and urad. Imports of pulses and wheat have also been made duty-free.

In fact, the government has been trying to bring down prices of manufactured products like cement, which were driving up inflation.

A further rise in the prices of primary articles would make complicate matters further for the government and the Reserve Bank of India, which is trying to ease inflationary pressures on the economy.


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Inflation rate climbs to 6.09 per cent