The government reduced factory the central value-added tax (CENVAT) on a wide range of manufactured items by 4 percentage points on Dec 7.
However, inflation for 'primary articles'—which has a weight of 22 per cent in the index and contains food articles—increased by 34 basis points to 12.15 per cent in the reported week, as compared to 11.81 per cent the previous week ended Dec 6, 2008.
Annual rate of inflation for 'food articles" increased by 27 basis points to 10.46 per cent in the week ended Dec 13. It was 2.33 per cent in the corresponding week year ago.
OneIndia News (With inputs from Agencies)