The Hindu : Business : Higher food prices push up inflation

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Friday, Jan 30, 2009
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Higher food prices push up inflation

Special Correspondent

NEW DELHI: The rate of inflation inched up for the second straight week in a row to 5.64 per cent for the week ended January 17 from 5.60 per cent in the previous week, mainly owing to higher prices of essential food articles, certain manufactured goods and non-administered petroleum products like jet fuel and furnace oil. The marginal rise of four basis points in the wholesale price index-based inflation was on account of the after-effects of the eight-day truckers’ strike which restricted the movement of goods and led to shortages and consequent rise in prices. Even as the strike was called off on January 12, food articles such as maize, bajra, jowar, rice, sugar and gur turned dearer during the week.

In its analysis of the WPI data, the Finance Ministry noted that the “slight increase seen in overall inflation” was owing to the group of ‘manufactured products’. In this category, the inflation rate increased to 6.2 per cent from 5.9 per cent in the previous week.

“The sub-groups of food products, sugar, khandsari and gur, salt, oil cakes, beverages, tobacco & tobacco products, textiles, chemicals and chemical products have registered increase in the rate of inflation compared to last week,” it said.

With the Government slashing the prices of petrol, diesel and domestic LPG, the inflation rate is expected to slide significantly.

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