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Inflation may inch up slightly but remain stable
New Delhi, Nov 02: Inflation rate is likely to inch up in the coming weeks from 5.01 per cent, but there is `no threat` of a significant rise as agricultural items and fuel prices are slated to stabilise, analysts said here today.
New Delhi, Nov 02: Inflation rate is likely to inch up in the coming weeks from 5.01 per cent, but there is "no threat" of a significant rise as agricultural items and fuel prices are slated to stabilise, analysts said here today.
The wholesale price index based inflation rate, which breached 5.0 per cent mark on week ended October 18 from 4.95 per cent in the previous week, was much higher than 3.01 per cent a year ago on account of costly wheat, vegetable, fruit and other food items.
Prices of fuel and manufactured products fell during the week to keep the WPI static at previous week's level of 175.9.
"Inflation will not rise much. After the new harvest comes in the market, it will fall," Institute of Economic Growth director, B B Bhattacharya, said. The country is expecting a bumper harvest of kharif crop this year, which would keep the prices of farm items low.
While manufactured product prices have come down by 0.1 per cent, fuel prices have also dipped by 0.7 per cent.
Referring to Opec's decision to keep international oil prices stable, Crisil chief economist Subir Gokarn said, "there is no threat on inflation. The arrival of kharif crop, decline in manufactured product prices and stable fuel prices would keep prices down." "Inflation is not a problem. It will remain around 5.0 per cent for next three months and come down from January," Standard Chartered Bank economist Kishlaya Pathak said.
The overall price level inched up mainly due to 0.8 per cent rise in prices of primary articles, though fuel was cheaper by 0.7 per cent and manufactured products by 0.1 per cent.
Bureau Report
Prices of fuel and manufactured products fell during the week to keep the WPI static at previous week's level of 175.9.
"Inflation will not rise much. After the new harvest comes in the market, it will fall," Institute of Economic Growth director, B B Bhattacharya, said. The country is expecting a bumper harvest of kharif crop this year, which would keep the prices of farm items low.
While manufactured product prices have come down by 0.1 per cent, fuel prices have also dipped by 0.7 per cent.
Referring to Opec's decision to keep international oil prices stable, Crisil chief economist Subir Gokarn said, "there is no threat on inflation. The arrival of kharif crop, decline in manufactured product prices and stable fuel prices would keep prices down." "Inflation is not a problem. It will remain around 5.0 per cent for next three months and come down from January," Standard Chartered Bank economist Kishlaya Pathak said.
The overall price level inched up mainly due to 0.8 per cent rise in prices of primary articles, though fuel was cheaper by 0.7 per cent and manufactured products by 0.1 per cent.
Bureau Report