ManagementInflation in positive zone after 3 months; rises to 0.12%
Inflation turned positive for the first time in three months, rising to 0.12 per cent during the week ended September 5 as foodstuff became costlier.
- Milking it - Trade unions to stage nation-wide protests on October 28">Trade unions to stage nation-wide protests on October 28 - Exec pay jumps in UK despite recession: report - RBI pessimistic about higher growth rate - UPDATE: Inflation up at -0.12% on higher food prices - Oil hovers near $71 amid weakening US dollar
Inflation rose despite a high base of 12.42 per cent in the corresponding week last year. The rate of price rise stood at (-) 0.12 per cent in the previous week.
Food items in raw form became dearer by 2.2 per cent as poultry chicken prices rose exorbitantly by 16 per cent, fruit and vegetables by 8 per cent, pork by 5 per cent and spices by 3 per cent.
Subbarao had said the challenge before the Reserve Bank and the government over the next few months, "perhaps over the next couple of years" is to withdraw from the accommodative policy and supporting drivers of growth.
"This question of exit will be upon us much sooner than most of the country. We have to take a call on supporting the recovery and stemming inflationary pressure," he had said.
During the week, food items in raw form became dearer by 2.2 per cent, as prices of some of items like bajra rose by 2 per cent, and rice and moong became expensive by 1 per cent.
Fruit and vegetable turned expensive by 24 per cent. Sugar, khandsari and gur became dearer by 40.3 per cent, pulses by 21.5 per cent and cereals by 12.6 per cent. At the same time, prices of milk went up by 10.2 per cent.
Among manufactured items, polyester staple fibre moved up by 5 per cent, lead ingots by 4 per cent electrical relays by 3 per cent and other iron steel and zinc ingots by one per cent each.
However, prices of plastic containers declined by 6 per cent, enamels by 4 per cent and basic pig iron and foundry pig iron by 2 per cent each.
Inflation for the week ended July 11 has been revised upward to - 0.63 per cent from -1.17 per cent estimated provisionally earlier.