Inflation rate climbs to 4.35 per cent news
22 February 2008

Mumbai: The annual rate of inflation based on the wholesale price index rose to 4.35 per cent for the week ended February 9, compared to 4.07 per cent for the previous week, mainly due to a rise in prices of food articles and manufactured products.

The inflation rate stood at 6.52 per cent in the corresponding week a year ago.

During the week under review, food articles like fruits and vegetables, condiments and spices, fish marines, arhar, bajra and barley became expensive.

Among manufactured food products, prices of imported edible oil, oil cakes, khandsari, mustard oil and groundnut oil became dearer.

Although the rate of inflation is still below the Reserve Bank's comfort level of 5 per cent, is expected to rise further in coming weeks with generally high food and commodity prices and the recent hike in fuel prices.

RBI officials said earlier this month inflation was still high by global standards and needed to be brought down.

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.


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Inflation rate climbs to 4.35 per cent