Inflation rises to 44-month high

Inflation rose to near 44-month high of 7.83 per cent for the week ended on May 3, against 7.61 per cent in the previous week

New Delhi: Inflation rose to near 44-month high of 7.83 per cent for the week ended on May 3, against 7.61 per cent in the previous week, mainly on account of rising prices of essential food items and some manufactured products. Inflation was last above this level at 7.87 per cent on September 11, 2004 as per provisional figures and 7.86 per cent for the week ended September 18, 2004, according to final figures.

During the week, prices of food articles like fruits and vegetables, spices, coffee, masoor rose, compounding worries of the government and RBI amid a slowdown in industrial growth.

Among food articles, fruits and vegetables went up by 3 per cent, coffee 6 per cent, maize 4 per cent, spices and masoor by 1 per cent each. Even in manufactured category, prices of food articles like atta, coconut oil and khandsari went up.

However, prices of cement, iron and steel declined, giving some respite to the government. Prices of some industrial fuels like naphtha, furnace oil and light diesel oil also shot up.

Consumers receive some respite as food prices stop rising

Reeling under high inflation for quite some time, the consumers in four metros received some respite with retail food prices generally remaining steady in early part of May. Barring groundnut oil, prices of 13 essential commodities in Delhi, Mumbai, Kolkata and Chennai retail markets remained steady during the week ended May 9, according the government statement.

Prices of pulses and edible oils that have risen in the last few weeks due to short supply of the commodity in the country have remained unchanged in all four metros.

In Delhi, prices of gram dal and tur remained steady at Rs 36 per kg and Rs 42 per kg respectively over a week in the retail market. Wheat and atta stood at Rs 13 per kg and Rs 14 per kg respectively. Meanwhile, groundnut oil rose by Rs 1 to Rs 121 per kg over one week, the data showed.

According to economists, prices of some commodities have calmed down to some extent after the government has taken a slew of measures to ease the inflation which has shot up to 7.61 per cent for the week ended April 26 and has further risen to 7.83 per cent for the week ended May 3. "Retail prices of pulses, wheat and dal have come down in the last few weeks. It has eased our food expenses a bit," said a housewife in Delhi, Suchitra Singh..

Cost of living in metros is normally high and a steady price movement in food items is a breather to consumers. It also helps to keep inflation under control, experts said.

In order to arrest rising food prices, the government on March 31 had cut the import duty on all edible oils. It extended the ban on export of pulses for one more year. Last week, it also suspended chana, potato, soya oil and rubber from futures trading. (PTI)

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