Indian inflation rises to 0.26pc on higher food prices
Saturday, 25 April 2009
NEW DELHI, Apr 24 (PTI): Inflation in India rose to 0.26 per cent but remained around a three-decade low, even as essential food articles like vegetables and cereals turned costlier, something that is likely to become an issue in the ensuing general elections.
Wholesale price-based inflation rose by 0.08 percentage points during the week ended April 11 from 0.18 per cent in the previous week.
"Some commodities are pressurising inflation. These are primary articles, specially food items like cereals and pulses," said Crisil Principal Economist D K Joshi.
Even as pulses varieties were cheaper by 0.3 per cent over the previous week, they were expensive by 9.81 per cent year-on-year.
Even on a weekly basis, prices of raw food as a whole rose by 0.5 percent due to tea turning expensive by 5 per cent, bajara by 3 per cent, vegetables by 2.6 per cent, and mutton and maize by one percent each.
Political parties, including both the ruling Congress and the main opposition BJP, have promised a concessional supply of wheat and rice to the poor through the price distribution system.
On a yearly basis, food prices rose by 7.07 per cent. Specifically, processed tea was costlier by 42.75 per cent; sugar, khandsari and gur by 18.21 percent; common salt by 13.03 per cent; cereals by 9.81 percent; and fruit and vegetables by 8.52 per cent.
On Tuesday, the Reserve Bank cut two short-term key rates by 25 basis points each, but economists said there is no link between monetary policy and food prices.
Joshi expects the RBI to cut key policy rates further by 25 basis points in the next policy in July.
During the week, manufactured items like textiles, chemicals, non-metallic minerals, and basic metals also rose. However, prices of machinery and machine tools declined.
Wholesale price-based inflation rose by 0.08 percentage points during the week ended April 11 from 0.18 per cent in the previous week.
"Some commodities are pressurising inflation. These are primary articles, specially food items like cereals and pulses," said Crisil Principal Economist D K Joshi.
Even as pulses varieties were cheaper by 0.3 per cent over the previous week, they were expensive by 9.81 per cent year-on-year.
Even on a weekly basis, prices of raw food as a whole rose by 0.5 percent due to tea turning expensive by 5 per cent, bajara by 3 per cent, vegetables by 2.6 per cent, and mutton and maize by one percent each.
Political parties, including both the ruling Congress and the main opposition BJP, have promised a concessional supply of wheat and rice to the poor through the price distribution system.
On a yearly basis, food prices rose by 7.07 per cent. Specifically, processed tea was costlier by 42.75 per cent; sugar, khandsari and gur by 18.21 percent; common salt by 13.03 per cent; cereals by 9.81 percent; and fruit and vegetables by 8.52 per cent.
On Tuesday, the Reserve Bank cut two short-term key rates by 25 basis points each, but economists said there is no link between monetary policy and food prices.
Joshi expects the RBI to cut key policy rates further by 25 basis points in the next policy in July.
During the week, manufactured items like textiles, chemicals, non-metallic minerals, and basic metals also rose. However, prices of machinery and machine tools declined.