Inflation in India higher than other countries: RBI

Mumbai, Aug. 31 (PTI): The rate of inflation in India remained higher compared to other emerging markets as also the advanced economies in 2006-07, the Reserve Bank said in its annual report on Thursday.

While inflation remained within the RBI's projection of 5.0-5.5 per cent up to November 11, 2006, it exceeded the upper band during the remaining part of the year. Between January 6 and March 24, 2007 it was above six per cent.

The average Wholesale Price Index (WPI) inflation rate (average of the 52 weeks) went up to 5.4 per cent against 4.4 per cent during the previous year, the report said.

The report on the central bank's performance between July 1, 2006 and June 30, this year said inflation was firm all across the world during last year owing to higher international crude oil prices. While crude oil prices eased from August 2006, inflationary pressure continued from other commodity prices and increased capacity utilisation rates.

Among the different groups that contribute to inflation, primary articles impacted the inflation level the highest during the year, it said.

"Wheat, pulses, milk, oilseeds and raw cotton were the major drivers of primary articles inflation," it said. While prices of wheat rose 7.3 per cent, pulses edged higher by 12.5 per cent which was incidentally on top of 33.3 per cent rise during the previous year.

Oilseeds prices were up 31.6 per cent against a decline of 9.2 per cent the previous year. While raw cotton increased by 21.9 per cent against a marginal decline in global prices.

---

---