The Hindu Business Line : Inflation rises to 11.42%

New Delhi, June 27 The Wholesale Price Index-based inflation shot up further to 11.42 per cent during the week ended June 14, up from the previous week’s annual rise of 11.05 per cent.

The latest rise in the year-on-year inflation was driven by an across-the-board increase in price levels. Inflation in the manufactured products rose 9.74 per cent , up from 9.09 per cent during the previous week, with dairy items (11 per cent), edible oils (16 per cent), liquor (10 per cent), paints (13 per cent) and iron and steel (34 per cent) contributing to the rise. Inflation in primary articles also climbed up to 10.96 per cent, from 10.78 per cent , mainly on account of fruits (12 per cent), milk (9 per cent) and spices (11 per cent). Inflation in the fuel group rose further to 16.37 per cent from 16.25 per cent , with the mineral oils sub-group showing a 26 per cent increase in inflation levels.

‘To stay in double digits’

Reacting to the numbers, Mr Subhashish Gangopadhyay, Advisor to the Finance Minister, told newspersons here that inflation would continue to remain in double digits for some more weeks even if prices fall due to the ‘base effect.’

According to the latest WPI data, items such as fruits and vegetables, for instance, have turned cheaper on a sequential basis, with inflation levels in the case of vegetable down marginally and fruits down nearly 2 per cent between the latest reported week and the one preceding it. The year-on-year comparison, on the other hand, point to inflation rising 12 per cent in the case of fruits and 3 per cent in the case of vegetables, mainly on account of the base effect.

Items where inflation continues to inch upwards, noticeably on a week-on-week basis, include tea, up three per cent sequentially, milk (one per cent), sunflower oil (four per cent) and vanaspati (two per cent). Among daily use items, inflation in the case of toilet soap shot up eight per cent, detergents nine per cent and hair oil one per cent. Among fuel items, lubricants turned dearer by 19 per cent on a sequential basis.

Upward revision

As per the revised WPI data, the inflation rate for the week ended April 19 was revised upwards to 8.23 per cent, as against the provisional estimate of 7.57 per cent.