Inflation leaps to 8.1%, gets govt worried
Inflation galloped to a 45-month high of 8.1 per cent, whipped up by costlier edibles and industrial fuel as government measures appeared to have little control on rising prices.
By PTI |
NEW DELHI: Inflation galloped to a 45-month high of 8.1 per cent, whipped up by costlier edibles and industrial fuel as government measures appeared to have little control on rising prices.
With a hike in retail fuel prices around the corner, Finance Minister P Chidambaram said the impact of any increase in petrol and diesel prices would be short-lived.
Inflation, measured on wholesale prices, was 8.1 per cent for the week ending May 17 from 7.82 in the previous week. The last high, as per provisional figures, was 8.33 per cent in the week ended August 28, 2004.
"8.1 per cent inflation is worrisome," Chidambaram told reporters after releasing GDP growth figures for last fiscal.
Since the March 31 decision of the Cabinet Committee on Prices to slash import duty on edibles oils and ban export of non-basmati rice to contain inflation, government has unveiled numerous measures to tame price rise.
It had also goaded steel and cement manufacturers to cut and hold prices for up to 3 months. Chidambaram today said there was still scope for cement makers to cut prices.
Incidentally, cement and steel prices came down by 0.6 per cent each during the week under review. As opposed to the prices of these construction materials, prices of fish marine jumped by 6 per cent, fruits and vegetables 3 per cent, moong 2 per cent and spices by 1 per cent.
Despite a ban on export of skimmed milk powder, it became costlier by 7 per cent. Also, prices of imported edible oil and khandsari went up by 1 per cent.
In industrial fuel, furnace oil was dearer by 3 per cent, light diesel oil 2 per cent and coke 31 per cent.
He assured to "do our best to contain... inflation." But a lot depends on crude prices ruling above $130 a barrel.
With a hike in retail fuel prices around the corner, Finance Minister P Chidambaram said the impact of any increase in petrol and diesel prices would be short-lived.
Inflation, measured on wholesale prices, was 8.1 per cent for the week ending May 17 from 7.82 in the previous week. The last high, as per provisional figures, was 8.33 per cent in the week ended August 28, 2004.
"8.1 per cent inflation is worrisome," Chidambaram told reporters after releasing GDP growth figures for last fiscal.
Since the March 31 decision of the Cabinet Committee on Prices to slash import duty on edibles oils and ban export of non-basmati rice to contain inflation, government has unveiled numerous measures to tame price rise.
It had also goaded steel and cement manufacturers to cut and hold prices for up to 3 months. Chidambaram today said there was still scope for cement makers to cut prices.
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Incidentally, cement and steel prices came down by 0.6 per cent each during the week under review. As opposed to the prices of these construction materials, prices of fish marine jumped by 6 per cent, fruits and vegetables 3 per cent, moong 2 per cent and spices by 1 per cent.
Despite a ban on export of skimmed milk powder, it became costlier by 7 per cent. Also, prices of imported edible oil and khandsari went up by 1 per cent.
In industrial fuel, furnace oil was dearer by 3 per cent, light diesel oil 2 per cent and coke 31 per cent.
He assured to "do our best to contain... inflation." But a lot depends on crude prices ruling above $130 a barrel.
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