Inflation climbs up to two-year high of 5.56%

With Iraq war showing no signs of abatement, inflation in India continued to climb yet another high of 5.56 per cent for the week-ended march 15 mainly due to price rise in manufactured products brought about by steep hike in domestic fuels’ prices in the previous week.

The price change, as measured by WPI, rose by 0.43 per cent from the week-ago’s level to tick the highest figure in the last one-and-a-half years. The index was 1.63 per cent in the corresponding period a year ago. WPI rose by 0.4 per cent to 170.8 as there was rise in the price of primary articles, mainly in mass consumption items of vegetables and fruits. The index was 161.8 a year-ago period.

ICRA’s Saumitra Chaudhuri said, “it is mainly due to increase in petroelum prices and inflation in the manufactured products.” The final WPI and the point-to-point inflation remained firm at the provisional levels of 167.9 and 4.42 per cent for the week ended January 18. Notwithstanding the downward slide in international crude prices during the period in concern on reports that lent hopes of delayed war heading for a crisis summit, domestic fuel prices were firm at last week’s level of 251.5.