Inflation takes 13 month bow, to rise

With food items as well as fuel and manufactured items becoming cheaper, inflation hit a 13-month low of 4.22 per cent for the week-ended June 4.

However, inflation is all set to go up, with the goverment gearing up to hike petrol and diesel prices in the near future.

The WPI inflation fell for the sixth consecutive week by an impressive about 1 per cent from the previous week’s 5.20 per cent. It was as high as 6.70 per cent in the year-ago period, thus showing that the recent decline in inflation is more due to the base year effect.

The government wants to push through the fuel price hike this month so that the base year effect remains and inflation does not show a sudden jump after the price revision, ministry sources said.