Inflation rises to 12.14 percent

September 18th, 2008 - 8:35 pm ICT by IANS  

Manmohan SinghNew Delhi, Sep 18 (IANS) After three successive weeks of decline, India’s annual rate of inflation moved up marginally to 12.14 percent for the week ended Sep 6 from to 12.1 percent for the week before, fresh data showed Thursday.The inflation rate, based on the official wholesale price index (WPI), stood at 3.51 percent for the corresponding week last year.

The WPI data released by the ministry of commerce and industry showed an increase of one percent in the index for primary articles such as fruits and groundnut seeds over the past week.

The index for fuel, power, light and lubricants declined 0.2 percent, while that of manufactured products such as mustard oil and textile items declined 0.1 percent.

Alarmingly, the final data for WPI for the week ended July 12 showed that the inflation rate was actually 12.13 percent, as against 11.89 percent based on the provisional statistics.

The rise in inflationary trend comes after a gap of three weeks during which inflation moderated to 12.1 percent from a peak of 12.63 percent.

“Annual rate of inflation, year-on-year as conventionally measured, remained stable at 12.14 percent,” a finance ministry statement said, soon after data was officially released.

“Out of a total of 98 primary articles, 13 of them like bajra, maize, cashewnuts, turmeric and tomato have shown a decline in prices in the current week (Sep 6)” the statement added.

The government is confident of bringing down prices and ease the burden on the average citizen, with Prime Minister Manmohan Singh, while expressing concern over rising inflation, said the level would moderate in the coming few months.

Former Reserve Bank of India (RBI) governor C. Rangarajan, who also chaired the Prime Minister’s Economic Advisory Council till recently, has also forecast the inflation rate to moderate to 10 percent by December.

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