Inflation rises to 44-month high, at 7.83 pc

FIGURE OUT: Last week the wholesale price index rose to a 42 month high.

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Keywords: Food Prices, Price Up

New Delhi: Another Friday and a new figure for inflation is out. Inflation for the week ended May 3 is at 7.83 per cent against 7.61 per cent in the previous week.

A poll conducted by Network 18 estimated inflation for the week ended May 3 to come in marginally lower at 7.59 per cent.

Last week the wholesale price index rose to a 42 month high of 7.61 per cent for the week ending April 26. The reasons for the spike came from higher food prices.

Meanwhile, the CPI has blamed the Government's obsession with GDP and its unwillingness to intervene and leave everything to market forces as the cause of continuing inflation.

The inflation rises mainly on account of rising prices of essential food items and some manufactured products.

Inflation was last above this level at 7.87 per cent on September 11, 2004 as per provisional figures and 7.86 per cent for the week ended September 18, 2004, according to final figures.

The WPI based index inflation stood at 5.74 per cent in the corresponding week a year ago.

During the week, prices of food articles like fruits and vegetables, spices, coffee, masoor rose, compounding worries of the government and RBI amid a slowdown in industrial growth.

Among food articles, fruits and vegetables went up by 3 per cent, coffee 6 per cent, maize 4 per cent, spices and masoor by 1 per cent each. Even in manufactured category, prices of food articles like atta, coconut oil and khandsari went up.

However, prices of cement, iron and steel declined, giving some respite to the government.

Prices of some industrial fuels like naphtha, furnace oil and light diesel oil also shot up.

(With agency inputs)