New Delhi: A sharp rise in food prices,
vegetables in particular, pushed inflation higher to 0.83 per
cent as of September 19 and analysts expect the rate of price
rise to cross seven per cent by this fiscal end.
Inflation was at 0.37 per cent in the previous week.
Overall, prices of raw food items climbed 16.32 per cent
on annual basis, driven mainly by a 49.44-per cent rise in
vegetable prices.
Staple vegetables such as potato and onion were ruling at
Rs 18 a kg and Rs 12.50 a kg, respectively, in the wholesale
markets as of September 30, up from Rs 16.88 and Rs 10 on
September one, market sources said.
Official data showed potatoes were costlier by 81 per
cent, pulses 20 per cent and rice by 17 per cent.
Fuel items like furnace oil too were expensive by 12 per
cent and light diesel oil by 2 per cent.
Analysts said that the more than expected rate of price
rise could push inflation above seven per cent by the end of
the current fiscal.
Commenting on the price rise, Finance Minister Pranab
Mukherjee said rising inflation is a matter of concern.
"I have told earlier also that there is an inflationary
potentiality and inflation may go up. Naturally, whenever it
goes up, it's a matter of concern but at the same time the
type of situation which developed cannot continue," he said.
Yes Bank Chief Economist Shubhada Rao said, "At this
rate there is a likelihood that it may rise above 7 per cent
by March 2010."
Bureau Report
First Published: Thursday, October 01, 2009, 18:04