Mumbai: The annual rate of inflation based on the wholesale price index rose to 3.75 per cent during the week ended December 1, against 3.01 per cent in the previous week on account of a rise in the prices of fruits and vegetables and some manufactured items.
Although the inflation rate is well below the five per cent ceiling of the Reserve Bank, it is the highest in three months and, with a possible hike in fuel prices to come, the RBI is expected to keep its tight money stance.
The inflation rate stood at 5.36 per cent in the corresponding week a year ago.
During the week under review, prices of fruits and vegetables, condiments and spices went up, while fish-marine became cheaper.
Among manufactured food items, groundnut oil and coconut oil went up, while khandsari and maida declined.
In fuels, prices of aviation turbine fuel shot up by 16 per cent, naphtha by 9 per cent and bitumen rose by 6 per cent.
Meanwhile, Reserve Bank of India deputy governor Rakesh Mohan said in Kolkata yesterday that the immediate aim was to contain inflation at 4-4.5 per cent.
Last month, the oil minister said there was no need to raise fuel prices as state-run oil firms were being compensated adequately for their losses. But the prime minister has now formed a panel of ministers to study the pricing of essential commodities, including fuels.