India’s inflation at nine-month high

March 7th, 2008 - 4:21 pm ICT by admin  

A file-photo of P. Chidambaram

New Delhi, March 7 (IANS) Despite a tight money policy of the central bank and the government’s resolve to tame prices, India’s annual rate of inflation based on wholesale prices crept up to a nine-month high on higher food prices. The inflation rate, as measured by the official Wholesale Price Index (WPI), was ruling at 5.02 percent for the week ended Feb 23, against 4.89 percent for the week before, showed data released Friday.

The higher inflation rate was on account of higher prices of fruits, vegetables, oilseeds, meats and milk. The government has targeted to keep the inflation rate at around four percent for the current fiscal.

The rise in the price line comes against the backdrop of the national budget for the next fiscal presented Feb 29 and a meeting Finance Minister P. Chidambaram had with the board members of the Reserve Bank of India (RBI) here Thursday.

“The budget was broadly consistent with the overall objectives of achieving growth along with price stability,” RBI Governor Y.V. Reddy said after the meeting.

The finance minister, too, has been asking the Indian industry to help in taming inflation. “Manufacturing sector will have to become more competitive, efficient and hold the price line,” Chidambaram told industry leaders Wednesday.

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