New Delhi, Feb 8: The headline inflation rate for the week ended January 26 increased to 4.11 per cent, the highest in five months, compared to its previous week's level of 3.93 per cent.
The annual inflation rate was 6.69 per cent during the corresponding week of the previous year, an official statement said here today. According to policy makers inflation may accelerate on increased money supply caused by capital flows from overseas investors, seeking higher returns in India, where growth is almost three times that in the US, Europe and Japan. Reserve Bank of India Governor Y V Reddy has reiterated the warning about the dangers of inflation to the economy.
''Prices of non-administered petroleum products (naphtha, furnace oil, aviation fuel and the like) have increased in the range of 28-37 per cent,'' Mr Reddy said.
For Mr Reddy and the Reserve Bank overall, inflationary pressures have firmed up with implications of a rise in prices of food and fuel.