Inflation hits two-year high

Inflation rate surged to a two-year high at 6.24 per cent during the week-ended March 29 from about 1.6 per cent an year ago, as the Iraq war pushed up input costs and prices of manufactured items.

Price level also rose 0.25 per cent from 5.99 per cent in the previous week as prices of primary essential items started rising after the drought-hit kharif and flat rabi harvests.

The wholesale price index WPI, based on all commodities, rose by 0.2 per cent to 171.9 points from 171.6 in previous week, mainly due to 0.3 per cent rise in prices of both primary articles and manufactured products, although domestic fuel prices remained static.