BackFood items push up inflation to 7.33%
Food items push up inflation to 7.33%
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PTI
New Delhi: Inflation rate grew by a faster 7.33% in the week ended 12 April 7.14% in the previous week, on higher prices of food items, including jaggery and fish.
The price rise is expected to prompt Reserve Bank of India (RBI) to further tighten money supply in its annual credit policy slated to be announced on 29 April.
RBI has already increased CRR, the mandatory amount that banks keep with the central bank, by 0.5% check money supply. The hike will come into effect in two tranches on 26 April and 10 May.
The annual rate of inflation, which dipped from a 40- month high of 7.41% to 7.14% for week ended 5 April, again rose despite a host of measures announced by the government to control prices. Inflation for the corresponding period last year was at 6.34%.
The prices of certain essential commodities like vegetables, cereals, pulses and edible oils, however, softened during the week.
The average rate of inflation, according to the official data, worked out to be 4.51% during 2007-08 as compared to 5.42% in the previous fiscal.
Meanwhile, leaders of the Left Parties met Prime Minister Manmohan Singh and demanded immediate steps to check prices.
Inflation figures for the week ended 16 February were revised from the provisional 4.89% to 5.66%.
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