Mumbai: The annual rate of inflation based on the wholesale price index rose to a six-month high at 4.11 per cent for the week ended January 26 as against 3.93 per cent in the previous week, mainly due to rise in the prices of food articles and manufactured items.
 
The inflation rate stood at 6.69 per cent in the corresponding week a year ago.

Among food articles, maize, moong, wheat, condiments and spices and bajra moved up during the week while barley became cheaper, official data released today showed.

In the manufactured food category, salt, black tea leaf, bread and buns, and mustard oil got dearer.

The index representing fuel, power, light and lubricant remained unchanged at the previous week's level.

Among other manufactured items, toilet soaps, caustic soda, synthetic rubber, and truck and bus chassis moved up.
 
The inflation data justified the RBI's cautious approach of not changing the key interest rates in its quarterly review of the monetary policy on January 29.

India's inflation rate breached 4 per cent in late January, the highest in nearly five months. It is, however, still below the RBI's comfort level of 5 per cent but it is expected to head up further in the weeks ahead with high food and fuel prices at home and in global markets posing a risk.

India's economy was expected to expand 8.7 per cent in the fiscal year ending March 2008, slower than the previous year as higher interest rates dent consumer demand.