Inflation crosses 5 pc mark due to food prices

New Delhi, Oct 13: The annual rate of inflation rose to 5.16 per cent for the week ended September 30, as against 4.77 per cent in the previous week, owing to higher food and manufactuerd product prices.

The inflation rate calculated on a point-to-point basis, stood at 4.61 per cent during the corresponding week of the previous year, according to official figures released here today.

Yesterday, the Reserve Bank of India suggested combining the four consumer price indices (CPIs) to capture a more accurate picture of the economy.

''As the current CPIs do not provide changes in prices for the entire rural and urban population, there is a need to compile the CPI separately for the entire rural and urban population,'' the central bank said in a discussion paper on construction of a harmonised index of consumer prices (HICP).

Analysts expect that the Reserve Bank of India may not raise the key interest rates during the quarterly review of the credit policy, scheduled later this month, if the inflation rate remains within 5 per cent.

UNI