Inflation rate at 11.63%; Will it cost the govt its neck?

Written by:
Subscribe to Oneindia News

New Delhi, Jul 4 (UNI) The Midsummer Nightmare for the government and the people loomed large as the headline inflation rate for the week ended June 21 soared to a 13-year high of 11.63 per cent, even surpassing the earlier figure of 11.42 per cent which kept the political pot boiling.

Inflation data released here today shows a structural shift in the nature of inflation. Like last week, inflation is stretching its wings wider and has brought into its fold almost all Groups, save 'Fuel, Power, Light and Lubricants' and 'Transport Equipment and Parts.' Surprisingly, the group-fuel, Power, Light and Lubricants-- which was responsible for 94 per cent of the rise in prices in the week ended June 7 declined by 0.1 per cent, thanks to the downward pull exerted by mineral oil.

The highest increase Group wise was in 'Food Products,' which recorded a 0.9 per cent hike.

This was followed by 'Textiles,' which registered an increase of 0.6 per cent and 'Chemicals' which also accounted for the same percentage quantum increase.

'Primary Articles,' which have a weight of 22.02 per cent in the Wholesale Price Index (WPI), rose by 0.5 per cent.

The increase in 'Food Articles' group was on account of higher prices of tea (four per cent), fruit and vegetables, maize, bajra and fish marine (two per cent each) and urad, moong, condiments, spices and jowar (one per cent each).

The index for 'Non-Food Articles' group rose by 0.4 per cent due to higher prices of tanning materials (four per cent), copra (three per cent) and raw cotton, caster seed and rape and mustard seed (one per cent each).

However, the prices of fodder declined by one per cent.

The index for 'Textiles' group has risen largely on account of increase in prices of texturised yarn (nine per cent), tyre cord (seven per cent), synthetic yarn (three per cent) and dhoties, sarees and hessian cloth (one per cent).

Ayurvedic medicine liquids rose by a whopping nine per cent in the 'Chemicals and Chemical Products' group.

Phenol, which also a part of the group, went up by eight per cent.


Please Wait while comments are loading...