labels: economy - general
Inflation rate edges up to 4.13 per cent news
06 July 2007

Mumbai: The annual rate of inflation based on the wholesale price index rose 4.13 per cent in the week ended June 23, up 0.10 per cent from the previous week''s 4.03 per cent due to a rise in some food and mineral prices.

At 4.13 per cent the weekly inflation rate stayed near a 13-month low in the third week of June. It was also well within the Reserve Bank ceiling of 5 per cent.

The inflation rate was at 4.84 per cent during the corresponding week of the previous year.

Wholesale prices rose 4.13 per cent in the week ending June 23 from a year earlier, faster than 4.03 per cent in the previous week, official data showed.

Among food articles, prices of maize, fish-marine, linseed, dairy products, groundnut oil, fruits and vegetables and pulses became costlier, although spices and condiments, poultry chicken, ragi and bajra became cheaper.

Prices of some minerals witnessed sharp price increase as high as 25 per cent. Mineral like orchre, fire clay and iron ore registered price rise of more than 10 per cent.

During the week ended June 23, manufactured items such as dairy products, groundnut oil and lead ingots became dearer.

Prices of skimmed milk powder rose five per cent, oil cakes by two per cent, groundnut oil and rice bran oil by one per cent. But prices of ginegelly oil and khandsari eased one per cent.

To check prices of food grains, which have risen at almost twice the pace of manufactured product prices in the past year, the government removed the import duty on pulses and wheat. It also cut import taxes on cement and reduced gasoline and diesel prices to help slow price gains.

Reserve Bank governor Y V Reddy said last week that he wants to contain inflation within 5 per cent in the current fiscal and take it to 4-4.5 per cent over the medium term.

The government, meanwhile, revised the inflation rate for the week ended April 28 to 6.01 per cent from 5.66 per cent.


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Inflation rate edges up to 4.13 per cent