Inflation climbs to 3.21 pc
Higher prices of food products and some manufactured items pushed up inflation to 3.21 per cent.business Updated: Nov 30, 2007 14:02 IST
Higher prices of food products and some manufactured items pushed up inflation to 3.21 per cent for the week ended on November 17, against 3.01 per cent a week ago.
However, the wholesale price-based index, inflation, was way below the RBI projection of close to 5 per cent for this fiscal.
The inflation stood at 5.56 per cent a year ago.
Although inflation was still below the RBI's projection for this fiscal, analysts said they do not anticipate cut in interest rates, which has started telling on the economic growth.
Also, with crude hovering over $90 a barrel in the global markets, and food and commodity prices firming up, inflationary expectations are still large, they said, adding that the apex bank might not go for soft interest regime soon.
The wholesale price index, on which inflation data is based, rose marginally by 0.1 per cent to 215.7 points from 215.4 points during the week.
While most food products turned expensive, prices of fruits fell by 0.3 per cent and pulses by 0.8 per cent.
Prices of vegetables rose by 3.4 per cent, condiments and spices by 0.4 per cent, pulses by 0.4 per cent and eggs, meat and fish by 0.4 per cent.
More specifically, prices of bajra were up 6 per cent, jowar 2 per cent and arhar and pork by 1 per cent each.
In the manufactured products category, food articles were up marginally by 0.1 per cent due to 1 per cent higher prices of cotton seed oil and oil cakes.
Among other manufactured items, prices of most chemical and chemical products rose, while those of textile and basic metal alloys and metal products declined.
Among fuel and lubricant category, furnace oil prices rose by 2 per cent.
Meanwhile, inflation has been revised upwards to 3.51 per cent from provisional estimates of 3.42 per cent for the week ended September 22 after revision in wholesale price index.