Inflation raises ugly head, at 5-month high

Inflation for the week ended November 18 shot up to touch a five-month high of 5.45 per cent, just shy of the 5-5.5 per cent outer band projected by the RBI for the full fiscal.

According to data released by the Commerce 038; Industry Ministry on Friday, the rise in inflation was largely due an increase in the prices of minerals and manufactured goods. Inflation stood at 5.29 per cent the previous week, and was 4.27 per cent in the corresponding week in 2005.

The economy grew at 8.9 per cent and 9.2 per cent in the April-June and July-September quarters, respectively, this fiscal. This has stoked inflation, putting pressure on the RBI to hike interest rates.