Tough times ahead: India's inflation rate climbs to 11.98 percent
India's wholesale price index (WPI)-based inflation rate rose to 11.98 percent in the 12 months to July 19, higher than previous week's figure of 11.89 percent, government data showed on Thursday, giving rise to concerns that the central bank would move again to increase interest rates in its mission to tame inflation.
The annual rate of inflation, a year earlier, stood at 4.65 percent.
According to government data, rise in prices of some food articles and manufacturing products were responsible for the marginal weekly increase, even as the finance ministry said prices of essential commodities had shown some stability.
"Out of 98 articles, 15 items have shown a decline in prices as compared to previous week while prices of another 58 articles remained stable," the finance ministry said in a statement.
It, however, admitted that inflation for a group of 30 essential commodities went up to 6.67 percent from 5.82 percent in the previous week.
According to government data, the index for the 'Primary Articles' group, which carries weight of 22.02 percent on the WPI, rose by 0.1 percent. The sub-index for the 'food articles' group rose by 0.1 percent driven by hike in prices of pulses like moong (up 4 percent), urad (up 3 percent), arhar (up 2 percent), and condiments and spices and gram (up 1 percent each). However, the prices of fish (marine) and tea declined by 1 percent each.
The sub-index for the 'non-food articles' group declined marginally led by decline in prices of gingelly seed and rape and mustard seed (down 1 percent each). However, the prices of linseed and raw rubber moved up 2 and 1 percent respectively.
The index for the 'Fuel, Power, Light and Lubricants' group, which carries weight of 14.23 percent on WPI, remained unchanged at the previous week level.
The index for the 'Manufactured Products' group, which carries a weight of 63.75 percent on WPI, rose by 0.2 percent.
The sub-index for the 'food products' group rose by 0.6 percent, driven by higher prices of oilcakes (up 2 percent) and sugar and khandsari (up 1 percent each). However, the prices of rice bran oil (down 2 percent) and gingelly oil and groundnut oil (down 1 percent each) declined.
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