labels: economy - general
Inflation rate a tad higher at 4.27 per centnews
14 July 2007

Mumbai: The annual rate of inflation based on the wholesale price index (WPI) rose to 4.27 per cent for the week ended June 30, up 0.14 per cent from the previous week''s 4.13 per cent, government data showed.

Rising food and manufactured product prices pushed the annual wholesale inflation up more than expected in late June, but analysts still expect the central bank to keep interest rates steady at a July 31 policy review.

Inflation is higher than a 14-month low of 4.03 per cent in mid-June, but is still comfortably below the central bank''s ceiling of 5 per cent for the financial year ending March 2008.

Inflation for the week ended May 5, was revised to 5.74 per cent compared to the provisional figure of 5.44 per cent. This was done as WPI for the week stood at 212 points against the provisional figure of 211.4.

Annual inflation hit 6.69 per cent on January 27, its highest in more than two years, but softened as the central bank tightened policy and the government cut duties on a range of items.

During the week under review, vegetable prices soared 4.5 per cent. Prices of all food articles were up by 0.7 per cent with pulses like masur becoming costlier by five per cent, and jowar and fish-marine rising by one per cent each.

Prices of condiments and spices went up by two per cent. However, prices of coarse grain, bajra declined one per cent.

Rice ran oil prices rose three per cent, khandsari by two per cent and groundnut oil, cottonseed oil, ghee, maida and gingelly oil one per cent each.

Epoxy resins were expensive by 58 per cent while tablets other than vitamins and penicillin went up by three per cent, ceramic tiles by two per cent, footwear western type by one per cent and zinc ingots by four per cent.

Computer and computer-based systems were dearer by three per cent, other electrical equipments were up by 11 per cent, body for manufactured trucks and vans by four per cent.

However, prices of printing papers and canvas footwear were cheaper by one per cent, zinc prices were down by five per cent and zinc ingots fell by four per cent.

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Inflation rate a tad higher at 4.27 per cent