NEW DELHI, NOV 28: Triggered by the hike in the prices of food products, the inflation rate witnessed yet another ascent to touch its 23-week high of 3.12 per cent on November 13. It was 3.01 per cent the week before.The rise was despite the fall in the indices of food articles and non-food articles. The main factor for the 0.11 per cent increase was due to hike in prices of rice bran oil, bran, optical whitening agents, sulphuric acid, caustic soda, brass sheets, strips, steel ingots and automobile parts. But sunflower, raw jute, raw rubber and salt became cheaper during the week under review. However, it was much above the eight per cent mark at 8.21 per cent during the corresponding week last year.It had crossed the three per cent barrier last week after a gap of 22 weeks. It never touched the double digits for more than four years since April 15, 1995, when it stood at 9.90 per cent.In contrast, the inflation rate based on consumer price index for industrial workers, dropped drastically by1.01 per cent to 2.14 per cent in September from 3.15 per cent in the previous month. It has been on a downward swing for the sixth successive month since April this year. It had been maintaining a single digit realm for the ninth month in succession since January this year. The higher base during the corresponding period last year was responsible for the lower rate of inflation.Due to sharp downward curve in the indices of food articles and non food articles, the official wholesale price index for all commodities (base 1981-82) dropped, after witnessing a six-week rise, by 0.1 per cent to 369.8 from 370.2. The index for transport equipment and parts rose by 0.6 per cent during the week under review.The final wholesale price index for all commodities (base1981-82) stood at 366.9 on September 18 as against the provisional index of 364. The inflation rate calculated on final index worked out to 2.83 per cent in contrast to 2.02 per cent based on the provisional index.According to chartered bank reportthe inflation rate is likely to rise by five per cent or more by the march 2000 mainly due to diesel price hike. The government said that the diesel prices increase on October 5 was necessitated due to rise in the international prices of petroleum products.The Institute of Economic Growth (IEG) has predicted that the inflation rate would see a minute rise in the couple of months, but it ruled out sharp jump in the inflation.
