Inflation up at 5.43 per cent

New Delhi, Dec 31 (UNI) The annual inflation rate further rose to 5.43 per cent for the week ended December 16 from 5.32 per cent the previous week, owing to an increase in manufactured product prices.

The inflation rate calculated on a point-to-point basis, stood at 4.62 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 December 16, rose by 0.05 per cent to 207.8 from 207.7 for the previous week.

The Reserve bank of India has increased the cash requirement in two 25-basis point stages, on December 23 and January 6, to contain the inflation rate by targeting the surplus funds in the banking system. In response, the banks have also raised their lending rates by 150 to 200 basis points this year to protect their net interest margins.

The index for the Primary Articles group declined by 0.1 per cent to 211.8 from 212.1 for the previous week.

The index for Food Articles group declined by 0.1 per cent to 213.8 from 214.1 for the previous week due to lower prices of fruits and vegetables and eggs (2 per cent).

However, the prices of bajra (3 per cent), and barley, wheat, arhar and jowar (1 per cent each) moved up.

The index for Non-Food Articles group declined by 0.1 per cent to 189.8 from 190.0 for the previous week due to lower prices of soyabean (2 per cent), raw silk (1 per cent).

However, the prices of rape and mustard seed (1 per cent) moved up.

MORE UNI