Inflation stands at 4.92%

Wholesale prices based inflation rose by 0.10 per cent to stand at 4.92 per cent during the week ended August 12, as against 4.82 per cent in the previous week due to rise in prices of essential items like fruits and vegetables.

If inflation increases at the same rate next week as well, it will cross the psychological barrier of five per cent.

The government had to take steps to augment supply of pulses, wheat and sugar after inflation touched 5.24 per cent during the week ended June 10 and then to 5.44 per cent the following week, which has now been revised to 5.50 per cent.

Inflation is slated to be between 5-5.5 per cent in the current fiscal, as per the Reserve Bank's projection.

The prime minister's advisory council has predicted inflation to be around 5.5 per cent at the end of this fiscal, compared to 4.1 per cent last fiscal, in case petroleum prices are further revised.

The index for food articles, comprising essential items, rose by 0.5 per cent to 204.8 points during the week ended August 12, as fruits and vegetables became costlier by two per cent each, and condiments and spices by one per cent each.

However, the prices of poultry chicken declined by two per cent and masur by one per cent.

The index for non-food articles category rose by 0.5 per cent to 184.7 points due to higher prices of raw rubber by six per cent, niger seed by five per cent and raw cotton and groundnut seed by one per cent each.

However, the prices of raw silk fell by seven per cent, raw jute by five per cent and soyabean by one per cent.

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