The Hindu Business Line : Inflation rise continues, touches 11.89%

Reality bites
Inflation in manufactured products up 10.64%
Primary articles inflation rises to 10.84%
Inflation likely to remain in double digits till December

Our Bureau

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New Delhi, July 11 Annual inflation, measured by the Wholesale Price Index, surged further to 11.89 per cent during the week ended June 28.

The rise was the highest since annual numbers in the current series became available in April 1995, outstripping the previous week’s annual rise of 11.63 per cent, with manufactured products mainly to blame.

Inflation in the manufactured products rose 10.64 per cent on a year-on-year basis, up from 10.28 per cent during the previous reported week, with dairy products (11 per cent), common salt (7 per cent), edible oils (8 per cent), malt liquor (10 per cent) and iron and steel (34 per cent) showing a surge in year-on-year inflation levels. Inflation in case of primary articles also rose to 10.84 per cent, up from 10.54 per cent in the week ended June 21, with cereals (7 per cent), fruits (9 per cent), milk (8 per cent) and spices (11 per cent) responsible for the spurt. Inflation in the fuel group was nearly unchanged at 16.27 per cent during the latest reported week.

Reacting to the latest inflation estimates, a senior Government official said the country’s headline inflation rate is expected to stay in double digits until December.

Mr Subhashish Gangopadhyay, Advisor to the Finance Minister, said: “No doubt we will have double digit inflation till December. It’s simple arithmetic…”

“Though we have succeeded in bringing down food prices, high crude oil prices continue to remain a matter of concern,” he told reporters during an interaction. He said the steps already taken by the central bank would help tame inflation. Inflation has risen rapidly (806 basis points) since the beginning of this calendar year and crossed the eight per cent mark in the week ended May 17.