Mumbai:
The inflation rate based on the wholesale price index eased to 5.66 per cent
for the week ended April 28 from 5.77 per cent the previous week following a fall
in prices of some food products and manufactured items. The
latest inflation level remains above the Reserve Bank''s target of 5 per cent for
the financial year to March 2008 and far off the 3.90 per cent in the corresponding
week last year. Prices
of bajra, gram, barley, poultry chicken, wheat, raw rubber, raw cotton, raw jute,
sunflower, fibres, sugar, lead ingots were down, government data showed. The
wholesale price-based inflation stood at In food articles, prices of moong, masur
and milk were costlier while in manufactured items titanium dioxide, building
bricks, zinc, pan masala, beedi and biscuits moved up. There
was no change in fuel, power, light and lubricant segment. The
RBI has warned of signs of overheating in India''s fast-growing economy and wants
the rate to fall to 4.0 to 4.5 pct in the medium term. The
central bank has also introduced a slew of monetary tightening
measures in recent months to curb inflation. It raised short-term lending rates
twice this year, by a quarter per cent each time to 7.75 per cent -- the highest
level in more than four years -- to contain inflation.
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