By NNN-PTI,
New Delhi : Inflation in India rose to a 45-month high of 8.1 per cent for the week ended May 17 on account of rising prices of fruits and vegetables, pulses, spices and some industrial fuels.
The Wholesale Price Index-based inflation was 7.82 per cent a week ago and 5.3 per cent during the corresponding week last year.
During the week, prices of fish marine jumped up by 6 per cent, fruits and vegetables by 3 per cent, moong 2 per cent and spices by 1 per cent.
Among the industrial fuel, furnace oil became expensive by 3 per cent, light diesel oil 2 per cent and coke 31 per cent.
Despite the ban imposed by the government on export of skimmed milk powder, it became costlier by 7 per cent. At the same time prices of imported edible oil and khandsari went up by 1 per cent.
However, cement prices came down by 0.6 per cent while iron and steel prices declined by 0.6 per cent.
The previous high, as per the provisional figures for inflation, was recorded at 8.33 per cent for the week ended August 28, 2004.
Describing inflation at 8.1 per cent as worrisome, Finance Minister P Chidambaram Friday said steps will be taken to moderate and reverse headline inflation, but the outcome also depends on the global crude and commodity prices.
“Nobody has drawn any great satisfaction at 8.1 per cent inflation. 8.1 (per cent) is a worrisome inflation. But the measures, we have taken, have contained inflation. We are confident that we will gain mastery over this inflation and inflation will be contained over time,” Chidambaram told reporters here.
However, moderation in inflation depends on global crude oil and commodity prices, he said, adding, “Surely, we are still in full control over the situation.”
Crude oil prices, which touched a high of USD 135 per barrel, were trading at USD 126 per barrel Friday. The government is currently mulling how to address the issue.
The Finance Minister said any increase in administered prices of petrol would have moderate inflationary impact in the short term, but its effect on prices in the long term could not be predicted as there would be cut in expenditure under some heads as well.
He said the UPA Government under Manmohan Singh will do its best to moderate, contain and reverse headline inflation.
“That is the message that I want people to know. We will do our best to contain, moderate and to some extent reverse headline inflation. We are doing our best, we will continue to do our best, we are open to ideas (for containing inflation),” he said.
Meanwhile, buoyancy in agriculture has pushed the economic growth to 9 per cent, up from 8.7 per cent estimated earlier, even as the performance of manufacturing sector has been deteriorated.
“The upward revision in the GDP growth rate is mainly on account of the revision made in the estimated production of agricultural crops by the Department of Agriculture and Cooperation,” the government said in revised estimates of GDP.
The agricultural and allied activities grew by 4.5 per cent, compared to earlier estimates of 2.6 per cent, while the manufacturing sector growth has been lowered to 8.8 per cent from 9.4 per cent.
Going by the revised estimates, India’s GDP growth stood at nine per cent in 2007-08, compared to 9.6 per cent registered in the previous fiscal.