Inflation rises to 42-months high at 7.61 per cent

May 9th, 2008 - 4:09 pm ICT by admin  

New Delhi , May 9 (ANI): Despite several measures taken by the Government to control inflation, it rose to 42-month high at 7.61 per cent this week as against 7.57 per cent in the previous week.

The Wholesale Price Index-based inflation stood at 6.01 per cent in the corresponding week a year ago.

Prices of tea have jumped by 11 per cent, fruits and vegetables by one per cent, fish by two per cent and spices and cardamoms by three per cent.

Although, prices of pulses declined by nearly one percent among manufactured products, prices of mustard oil and imported edible oil went expensive by one per cent and four per cent respectively.

At the same time, cement and aluminum materials hardened however, steel prices declined during the week.

India had suspended futures trading in four commodities for a period of four months after criticism from government allies that futures had contributed to rising inflation.

The Reserve Bank of India Governor YV Reddy said last week that the RBI was raising the Cash Reserve Ratio (CRR) by 25 basis points to 8.25 percent, its highest level in seven years, to control inflation-stoking cash in the system.

He also assured that the rise will take effect from May 24. The unexpected increase in the CRR, the amount of funds banks have to keep on deposit with the central bank, followed a two-stage rise announced earlier in April to 8.0 per cent. (ANI)

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