Inflation tops 5 pc due to higher food, manu product prices

New Delhi, Oct 13 (UNI) 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.

The Wholesale Price Index (WPI) for all commodities for the week ended September 30, 2006, rose by 0.6 per cent to 207.8 from 206.6 for the previous week.

The last time the inflation rate crossed the 5 per cent mark was during the week ended August 26, at 5.01 per cent.

''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.

The index for the Primary Articles group marginally to to 212.4 from 212.3 for the previous week.

The index for Food Articles group rose by 0.3 per cent to 215.7 from 215.1 for the previous week due to higher prices of eggs (3 per cent), gram and bajra (2 per cent each) and fruit and vegetables, urad and arhar (1 per cent each).

However, the prices of fish-marine (4 per cent) and moong, maize and condiments and spices (1 per cent each) declined.

The index for Non-Food Articles group declined by 0.6 per cent to 187.2 from 188.4 for the previous week due to lower prices of raw jute and raw cotton (3 per cent each) and niger seed and copra (1 per cent each).

However, the prices of mesta (1 per cent) moved up.

The index for the Fuel, Power, Light and Lubricants group rose by 1.2 per cent to 328.9 from 324.9 for the previous week due to higher prices of electricity (4 per cent), naphtha (2 per cent) and bitumen (1 per cent).

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