Inflation shoots up

The upward trend in inflation has gathered momentum in the current fiscal year with the rate of price rise moving up almost three percentage points since April, when it stood at 4.91 per cent during the first week. This is the seventh consecutive week inflation, calculated on a point-to-point basis, has ruled above the six per cent mark. The six per cent-markwas breached in the first week of May this year after a gap of 54 weeks.

During the week under review, the official wholesale price index for all commodities’ (base:1981-82100) stood at 346.0 (p) as against 344.8 (p) for the previous week, showing an increase of 0.3 per cent. Meanwhile, inflation based on the final index for the week ended on April 25 stood at 5.9 per cent compared to the provisionally estimated 5.4 per cent.

The final index for all commodities for the week ended April 25 was at 341.7 as against 339.9 in the provisional index. Interestingly, inflation based on consumer price index for industrial workers (CPI-IW) is ruling much higher compared to inflation based on WPI. Inflation based on CPI-IW was at 10.5 per cent in May compared to 6.4 per cent on WPI.

The current increase in inflation is mainly on account of rise in prices of certain primary articles. The index for primary articles during the week rose by 0.8%. Commodities which showed substantial fluctuation during the week were;eggs (up 4 per cent), wheat and fish (up 3 per cent each), raw rubber (7 per cent) and rape & mustard seed (up 5 per cent).