New Delhi: Inflation surged by 0.81% to over 11-month high of 5.92% for the week ended 8 March, as essential items like fruits and vegetables and pulses as well as some manufactured items turned expensive.
The huge rise in inflation rate would not allow RBI to go for soft monetary stance as it is way above the central bank’s tolerance level of 5% for this fiscal, analysts said.
The wholesale prices-based inflation stood at 5.11% in the previous week.
The spurt in inflation rate happened despite a high base of 6.51% a year ago.
During the week, food articles like arhar, gram, moong, maize, fruits and vegetables as well as condiments and spices went dearer.
Prices of furnace oil, which is an industrial oil, went up by 2%.
Manufactured products like imported edible oil, coconut oil, mustard oil, also turned dearer. The Government had announced a ban on export of all edible oils with effect from 17 March for a period of one year to curb their rising prices.
The Prime Minister’s Economic Advisory Council Chairman C Rangarajan had said yesterday that inflation rate was little above comfort level, and it does not favour interest rates cut policy.
Rangarajan’s statement had come when inflation rate was 5.11%. With the figures, released today, a possibility of such cuts have become more remote, analysts said.