Inflation up on drought impact

An increase in prices of some food articles and a rise in costs of manufactured items pushed the wholesale inflation rate higher in the week ended July 27, according to official data released on Sunday.

Data from the Commerce and Industry Ministry showed the year-on-year inflation rate, measured by the wholesale price index, rose to 2.85 per cent in the week ended July 27 compared with 2.73 per cent in the previous week.

Analysts say inflation is likely to rise in the coming months as the impact of the drought manifests itself into prices of products that are of daily use. The effects of drought have already pushed prices of pulses,fruits and edible oils higher. Also the index of manufactured products rose 0.27 per cent.