Inflation breaks 2-year record as food, fuel get dearer

New Delhi, Jan 19 (UNI) In line with its upward trend and market expectations, the headline inflation rate stood at 6.12 per cent highest in two years, for the week ended January 6 due to higher food and energy prices.

The inflation rate calculated on a point-to-point basis, breached the upper limit of the RBI last week to report at 5.58 per cent while it was 3.86 per cent during the corresponding period the previous year, according to official data released here today.

Finance Minister P Chidambaram had said inflation is a concern, but was within ''expectations'' even at its present rate.

''Inflation is a concern, and is in step with our expectations.

We continue to monitor it and take all possible steps, be it on monetary or fiscal side,'' he said last Friday.

The Wholesale Price Index (WPI) for all commodities for the week ended January 6, rose by 0.05 per cent to 208.2 from 208.1 for the previous week.

The index for the Primary Articles group rose by 0.3 per cent to 213.1 from 212.5 for the previous week.

The index for Food Articles group rose by 0.2 per cent to 214.7 from 214.3 for the previous week due to higher prices of fruits and vegetables, maize, arhar and wheat (1 per cent each).

However, the prices of moong and condiments and soices (2 per cent each) declined.

The index for non-food articles group rose by 0.6 per cent to 191.8 from 190.7 for the previous week due to higher prices of groundnut seed (3 per cent), raw rubber (2 per cent) and cotton seed and rape and mustard seed (1 per cent seed).

However, the prices of niger seed (3 per cent), raw jute (2 per cent), copra and raw cotton (1 per cent each) declined.

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