Inflation eases a tad to 9.22 percent in July
August 16th, 2011 - 2:40 pm ICT by IANSNew Delhi, Aug 16 (IANS) Inflation based on wholesale price index declined marginally to 9.22 percent in July from 9.44 percent in the previous month, official data showed Tuesday.
Final inflation figure for May is revised upward to 9.56 percent from the provisional figure of 9.06 percent reported July 14, according to data released by the Ministry of Commerce and Industry.
Near double-digit inflation gives rise to speculation that the Reserve Bank of India (RBI) might further hike interest rates in its upcoming policy review Sept 16.
The RBI has hiked its policy rates 11 times since March 2010 to curb inflation.
In its monetary policy review in July, the central bank hiked key policy rates by 50 basis points. The repurchase rate, the interest the central bank levies on short-term borrowing by commercial banks, has been hiked to 8 percent from 7.5 percent and reverse repurchase rate, or interest paid on short-term lending, raised to 7 percent from 6.5 percent.
Despite 11 consecutive rate hike, inflation has remained stubbornly high almost near double-digit, much above the central bank’s comfort level of 4-5 percent.
Build-up inflation in the current financial year till the end of July was 3.01 percent compared to a build-up of 3.45 percent in the corresponding period of the previous year, official data showed.
The index primary articles, which has 20.12 percent weight in the WPI, rose by 0.2 percent to 197.9 in July from 197.5 in the previous month.
The index for fuel and power rose by 2.5 percent to 165.6 in the month under review from 161.6 in the previous month. Kerosene became costlier by 13 percent, prices of LPG rose 11 percent and diesel became costlier seven percent year-on-year.
The government had raised the prices of kerosene, LPG and diesel in view of the high crude oil prices in the international markets.
The index of manufactured products, which has 64.97 percent weight in the WPI, rose by 0.3 percent to 137.7 in July from 137.3 in the previous month.
According to data released last week, annual food inflation rose to 9.9 percent for the week ended July 30 from 8.04 percent in the previous week.
- Inflation eases to 9.22 percent in July (Lead) - Aug 16, 2011
- Food inflation rises to 9.80 percent; Pranab expresses concern - Aug 25, 2011
- Inflation falls to 6.89 percent in March - Apr 16, 2012
- Inflation accelerates to 7.23 percent in April - May 14, 2012
- Food inflation soars to 'disturbing' level of 10.05 percent - Sep 01, 2011
- Inflation rises to 7.23 percent; food prices surge (Lead) - May 14, 2012
- Police rates hiked to tame inflation: RBI - Aug 12, 2011
- Inflation eases in January, remains a concern, says Mukherjee - Feb 14, 2011
- RBI set to again hike rates to tame inflation - Oct 24, 2011
- Wholesale price inflation eases to 8.23 percent - Feb 14, 2011
- Retail inflation surges to 10.36 percent in April - May 18, 2012
- Inflation declines marginally, RBI rate cut seen (Roundup) - Apr 16, 2012
- Inflation remains sticky, growth will moderate: RBI - Oct 24, 2011
- Food inflation dips to six-year low, relief for consumer (Second Lead) - Dec 29, 2011
- Food inflation dips to 0.42 percent; WPI may fall to 6 percent: Pranab (Lead) - Dec 29, 2011
Tags: bank levies, bank of india, basis points, commercial banks, crude oil prices, inflation figure, international markets, july 14, kerosene, lpg, ministry of commerce, monetary policy, New Delhi, previous year, provisional figure, rate hike, rbi, reserve bank of india, wholesale price index, wpi