labels: Economy - general
Inflation rate moves above 3 per cent for the first time in five weeks news
17 November 2007

Mumbai: The annual rate of inflation based on the wholesale price index rose to 3.11 per cent for the week ended November 3.00 from the previous week''''s 5-year low of 2.97 per cent.

The inflation rate stood at 5.45 per cent in the corresponding week last year.

The rise in inflation rate is attributed mainly to a rise in the prices of food items, petroleum products and manufactured articles.

Among food items, fish (marine), eggs, moong and bajra became expensive, while prices of fruits and vegetables and poultry chicken came down.  

Prices of aviation turbine fuel flared up by five per cent while that of furnace oil shot up by six per cent.

In manufactured items, imported edible oil, sunflower oil, ghee and khandsari went expensive. However, prices of groundnut oil and sugar declined.

At three per cent, the inflation rate is the highest in five weeks. Analysts expect a further increase in price and inflation levels with high oil prices.

Despite the rise, inflation has now been below the Central Bank''''s fiscal year estimate of 5 per cent for 22 weeks.

Analysts said the still low number was not a fair reflection of price pressures.

The government is yet to raise retail prices of widely consumed fuels this year even though global oil prices have jumped to a series of all-time highs, and state refiners are losing cash to the tune of $50 million a day.

Analysts say a rise in prices is unlikely before elections in the state of Gujarat, due in December.

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Inflation rate moves above 3 per cent for the first time in five weeks