NEW DELHI, NOV 21: Inflation rate crossed the three per cent mark, rising to a 22-week high of 3.01 per cent for the week ended November 6 on account of a spurt in prices of food articles. The rate has risen above three per cent for the first time since the week ended June 12, when it was 3.0 per cent.The annual rate of inflation, based on the wholesale price index (WPI), recorded a 0.23 percentage points increase to 3.01 per cent (provisional) as against 2.78 per cent (provisional) in the previous week and a high of 8.61 per cent during the corresponding week last year.The last time inflation was over three per cent was on June 5 this year at 3.53 per cent. The lower rate of inflation during larger part of the current year is mainly due to comparison with a higher base last year when prices of most essential commodities had risen abnormally following shortfall in agriculture production. The index for food articles rose by 0.7 per cent aided by a sharp eight per cent increase in fruit prices.The WPIfor all commodities (base: 1981-82=100) recorded a marginal increase of 0.1 per cent during the reference week to 370.2 (provisional) compared to 369.8 (provisional) in the previous week.The final wholesale price index for `all commodities' for the week ended September 11 was 366.5 as against 363.7 calculated provisionally. The final annual rate of inflation for the same week stood higher at 2.8 per cent in comparison to 2.0 per cent on the provisional index. Analysts attributed the rise to a diesel price hike in October. "Since October this year, inflation has been rising because of the hike in diesel and kerosene prices," said Aashish Pitale, head of Research at JP Morgan. "Going forward, we see inflation figures rising sharply and by end-March, we expect it to be in the region of 5.5-6.0 per cent," he said.Diesel prices were raised by 40 per cent in the first week of October, following a rise in global crude and product prices.
