Inflation galloped to 42-month high of 7.57 per cent for the week ended April 19 as compared to 7.33 per cent a week ago mainly on account of higher prices of food articles like rice, milk, tea, vegetables and some manufactured products.The wholesale price based inflation stood at 6.07 per cent in the corresponding week a year ago. The previous high of 7.76 per cent was recorded for the week ended November 2, 2004.
During the reporting week, prices of tea shot up by 17 per cent, even as other food items like milk, rice, vegetables and mutton became dearer.
Among other commodities, the prices of Light Diesel Oil and furnace oil went up by 2 per cent and by 1 per cent respectively.
In the manufactured products category cast iron pipes jumped by 51 per cent, pig iron by 8 per cent and steel sheets by 2 per cent.
The annual rate of inflation, based on Wholesale Price Index (WPI), has been rising despite fiscal and monetary measures taken by the government recently.
While the government has banned export of certain commodities like non-basmati rice and pulses and reduced customs duties on various other items to rein in inflation, the Reserve Bank of India [Get Quote] (RBI) has raised the Cash Reserve Ratio (CRR) to suck excess liquidity from the market.
Inflation, the silent killer!
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