Food prices play dampener, inflation up at 0.37%
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Food prices play dampener, inflation up at 0.37%

Last Updated: Thursday, September 24, 2009, 12:53
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Food prices play dampener, inflation up at 0.37% Zeenews Bureau

New Delhi: An all round development in food prices reflected in the annual rate of inflation which shot to 0.37 percent for the week ended September 12 up by 0.2 percentage.

It was measured at 0.12 percent the previous week and 12.42 percent during the corresponding week of the previous year.

Average inflation for the week was calculated at 3.22%.

Higher inflation was reflected in almost all consumable items during the week that include mutton, spices, wheat, maize, sugar, mustard oil and gur.

On the annual basis, prices of potatoes were up by 14.87 percent, onions by about 20 percent, cereals by 11.39 percent and milk by 7.35 percent.

At the same time, rice got costlier by 14.94 percent, wheat by 5.12 percent and pulses by 15 percent.

Although inflation continues to remain below one percent, the 52-week average inflation for the week ended September 12 was at 3.22 percent.

Inflation for the week ended July 18 has been revised upward to (-)0.54 percent from (-)1.54 percent estimated provisionally.

Last week, a deputy governor of the Reserve Bank of India (RBI) said WPI inflation could hit 6 percent by the end of the fiscal year in March, above the central bank's July forecast of around 5 percent.

Private sector economists have said inflation could reach as high as 8 percent by the end of March.

The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is released weekly.

First Published: Thursday, September 24, 2009, 12:53

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