Friday, April 15, 2011

Inflation overshoots target, at 8.98% in March

NEW DELHI: Despite rampant rate hikes initiated by India's central bank and assurances from policy makers, the annual rate of inflation rose to 8.98% in March from 8.31% the month before, way above the target of 8% set by the Reserve Bank of India, official data showed on Friday.

The rise in the general price level was due to higher prices of fuels and manufactured products, according to data released by the commerce and industry ministry.

The provisional annual rate of inflation for December, which was earlier pegged at 8.23% for January, stood revised upwards to 9.35%.

The data will increase the pressure on the government to address supply side inefficiencies and not just look at prompting the Reserve Bank of India to raise rates to curb inflation -- something which the central bank has done eight times in the past 15 months.

The government will also be worried over high prices as five states go to vote in April-May to elect their new legislative assemblies.

The limited weekly data for the week ended April 2 showed a third successive decline in food inflation, which was registered at 8.28%.

Following is the 12-month inflation for some sub-indices within the overall wholesale price index:

Primary articles: 12.96%

Food Articles: 9.47%

Vegetables: 9.17%

Cereals: 3.96%

Pulses: (-)4.17%

Non-food articles: 25.88%

Fuels and power: 12.92%

Cooking gas: 14.99%

Petrol: 23.14%

Diesel: 6.22%

Manufactured products: 6.21%

Sugar: (-)7.46%

Edible oils: 12.54%

Manmade Textiles: 11.35%

Cotton Textiles: 27.45%

toi

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