Inflation up 4.41pc due to rise in Primary Articles

New Delhi, July 29: The inflation rate rose to 4.41 per cent for the week ended July 14, after remaining steady for two consecutive weeks at 4.27 per cent.

The annual inflation rate was 4.62 per cent during the corresponding week last year, an official statement said here.

It managed to stay below the psychological barrier of five per cent for the eighth consecutive week.

Ahead of the Central Bank's monetary policy review on July 31, analyst say they do not see any reason for a further rise in interest rates.

However, the overnight call money rates closed at 0.20-0.30 per cent on Thursday, indicating abundant cash supply in the banking system. The surfeit of cash might result in inflation rising further.

The Wholesale Price Index (WPI) for all commodities for the week ended July 14, 2007 rose by 0.1 per cent to 212.9 from 212.6 for the previous week.

The index for Primary Food Articles rose by 0.7 per cent to 222.5 from 221.0 for the previous week.

The index for the Food Articles group rose by 0.8 per cent to 220.9 (Provisional) from 219.1 for the previous week due to higher prices of fruits and vegetables (three per cent), ragi (four per cent), wheat (two per cent) and jowar, condiments and spices and bajra (one per cent each).

However, the prices of fish-marine (two per cent) and urad (one per cent) declined.

The index for non-food articles group rose by 0.4 per cent to 208.4 (Provisional) from 207.5 for the previous week due to higher prices of raw cotton (two per cent), soyabean and copra (one per cent each).

However, the prices raw rubber (one per cent) declined.

UNI