Inflation rises to 5.26 per cent

NEW DELHI, MAR 14: Higher prices of food products caused a 0.12 per cent rise in the annual rate of inflation to 5.26 per cent for the week ended February 27 increasing for the fourth consecutive week.

Inflation, based on the wholesale price index (WPI), stood at 5.26 per cent (provisional) compared to 5.14 per cent (P) in the previous week and 4.67 per cent in the corresponding week last year. The rate has been moving upwards since January 30 when it was 4.58 per cent. Annual inflation, which touched a 56-week low of 4.43 per cent for the week ended January 9, is likely to increase even in the coming weeks as the impact of a hike in rail freight charges and other budgetary proposals take effect. During the current week, the index for all commodities (base:1981-82100) was, however, down by 0.1 per cent at 354.0 from the previous week’s level of 354.1 (P).

Inflation based on the final WPI data for the week ended December 26, stood at 5.2 per cent. Rate of increase in prices based on consumer price indexfor industrial workers (CPI-IWk) for the first time, in nine months, fell to single digit levels in January to 9.4 per cent.