Inflation in India touches 42-month high mark

By IRNA,

New Delhi : Inflation in India today rose to 42-month high of 7.57 per cent for the week ended April 19. It was 7.33 per cent a week ago.


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According to reports received here, the rise is mainly on account of higher prices of food articles like rice, milk, tea, vegetables and some manufactured products.

During the reporting week, prices of tea shot up by 17 per cent.

The other food items like milk, rice, vegetables and mutton also became dearer.

Among other commodities, the prices of Light Diesel Oil and furnace oil went up by 2 per cent and by 1 per cent respectively. In the manufactured products category cast iron pipes jumped by 51 per cent, pig iron by 8 per cent and steel sheets by 2 per cent.

The annual rate of inflation, based on Wholesale Price Index has been rising despite fiscal and monetary measures taken by the government recently. As a fiscal measure, the government has banned export of certain commodities like non-basmati rice and pulses and reduced customs duties on various other items while as a monetary measure the Reserve Bank of India has raised the Cash Reserve Ratio to suck excess liquidity from the market.

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