Inflation rises marginally to 11.91%

The annual Wholesale Price Index-based inflation moved up to 11.91 per cent for the week ended July 5, with a slowdown in the primary articles inflation ensuring that the rise was only marginally higher than the 11.89 per cent reported for the previous week.

During the latest week, inflation in manufactured products rose 10.79 per cent on a year-on-year basis, up from 10.64 per cent during the previous reported week, with dairy products up 11 per cent, edible oils rising 18 per cent, fertilisers up 10 per cent and iron and steel surging 35 per cent.

Inflation in the fuels group inched up further to 16.94 per cent during the latest week, from 16.27 per cent in the previous week, on account of a 27 per cent jump in inflation in the mineral oils category and a 10 per cent spike in the coal group.
primary articles

Inflation in primary articles, however, bucked the trend and came down by 92 basis points to 9.92 per cent during the latest week, with inflation in the vegetables, pulses, and the eggs, meat and fish categories showing a decline.

Responding to the latest figures, the Finance Ministry on Thursday declared that inflation has “stabilised” on week-on-week basis. “The rate of inflation for the week ending July 5, 2008 stands at 11.91 per cent, very marginally higher than the rate of 11.89 per cent reported last week... Inflation, on a week-on-week basis, has stabilised,” the Finance Ministry said in a statement released along with official figures on inflation.

The statement said annual inflation rate for the group of 30 essential commodities has declined to 5.74 per cent during the week ending July 5 from 5.98 per cent reported last week.