Inflation moves up to 0.26%

MUMBAI: Inflation based on the wholesale price index (WPI) has moved up to 0.26% for the week ended April 11 when compared with 0.18% in the previous week due to higher prices of food articles. A UTVi poll had seen inflation easing to 0.13%.

The official WPI for all commodities for the week ended 11 April rose 0.3% to 228.8 (provisional) from 228.2 (provisional) for the previous week.

Inflation was at 7.95% during the corresponding week (12/04/2008) of the previous year.

The WPI for primary articles rose 0.5% to 248.9 (provisional) from 247.6 (provisional) for the previous week. The index for food articles group increased 0.5% to 246.8 (provisional) from 245.6 (provisional) for the previous week due to higher prices of tea (5%), bajra and jowar (3% each), fruit & vegetables (2%) and mutton and maize (1% each). However, the prices of gram and barley (1% each) declined.

The index for fuel, power, light and lubricants remained unchanged at its previous week's level of 322.6 (provisional).

The index for manufactured products increased 0.2% to 200.9 (provisional) from 200.5 (provisional) for the previous week.

The government revised inflation data for the week ended 14 February to 3.18% from the earlier announced 3.36.

Updated at 0930 hrs: Inflation for the week ended April 11 is estimated to ease to 0.13% from 0.18% in the week ago period, a poll of 13 economists by UTVi indicated. Inflation for week ended April 11 is expected to decline on the back of a high base effect from last year.

The inflation trajectory continues to remain southward bound and in its Annual Policy detailed on April 21 for the current financial year, the Reserve Bank of India said that inflation would slip into negative territory in the early part of 2009-10. RBI forecasts inflation to be around 4 percent by March next year. Announcing the policy the central bank slashed key interest rates by 25 basis points and in an interview with UTVi, RBI Governor D Subbarao has said there was room for further monetary policy easing. The inflation estimates of the 13 analysts polled by us ranges from a high of 0.26% to a low of zero.