Inflation accelerated to 9.9 per cent in February, led by higher fuel and manufactured products prices — a sign that the price rise may have moved beyond food articles.
The fuel price index shot up by over 10 per cent due to increased prices of petrol and diesel, following the rise in excise and customs duties announced in the Budget on February 26.
Prices of manufactured products grew by 7.4 per cent in February, as the excise duty on many of these had also been raised in the Budget.
“I am afraid we will have to deal with it (high inflation) for some more time. Inflationary pressure on food items has started coming down,” Finance Minister Pranab Mukherjee said.
Food inflation remained high at a worrisome 17.8 per cent.