Inflation close to five per cent mark at 4.92%

New Delhi, Aug 27 (UNI) The annual rate of inflation rose to 4.92 per cent, marginally less than the five per cent mark, for the week ended August 12, as compared to 4.82 per cent the previous week due to an increase in food, manufactured product prices.

Finance Minister P Chidambaram said steps are being taken to keep the inflation rate below 5 per cent in the financial year 2006-07, by providing ample liquidity to keep interest rates softer.

''Hardening of global interest is not in our control. What we are doing is to ensure ample liquidity so that the impact of hardening interest rates is softened.'' The inflation rate, calculated on point-to-point basis, stood at 3.67 per cent during the corresponding week of the previous year, according to official figures released here.

The Wholesale Price Index (WPI) for all commodities for the week ended August 12, 2006, rose by 0.2 per cent to 204.7 from 204.3 for the previous week.

The index for the Primary Articles group rose by 0.5 per cent to 203.6 from 202.5 for the previous week.

The index for Food Articles group rose by 0.5 per cent to 204.8 from 203.7 for the previous week due to higher prices of fruits and vegetables (2 per cent) and condiments and spices (1 per cent).

However, the prices of poultry chicken (2 per cent) and masur (1 per cent) declined.

The index for Non-Food Articles group also rose by 0.5 per cent to 184.7 from 183.8 for the previous week due to higher prices of raw rubber (6 per cent), niger seed (5 per cent) and raw cotton and groundnut seed (1 per cent each).

However, the prices of raw silk (7 per cent), raw jute (5 per cent) and soyabean (1 per cent) declined.

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