Rising food prices push inflation to 6.58%

Continuous rise in prices of food articles has sent the inflation soaring to an over two-year high of 6.58 per cent for the week ended January 27, raising apprehensions that RBI may take monetary measures soon.

Marking a significant difference from the corresponding week last year, when Inflation was well under control at 4.04 per cent.

Inflation has been rising despite fiscal measures taken by the finance ministry and monetary measures, including increase in short-term overnight lending to banks by RBI.

The inflation, based on the Wholesale Price Index, has been pushed on sequential basis by 0.47 per cent within a week from 6.11 per cent on January 20 this year mainly on account of rise in prices of food articles like vegetables (0.7 per cent), eggs, meat and fish (1.4 per cent), milk (1.4 per cent), fruits and oil seeds (1.7 per cent each).

However, prices of pulses, sugar, processed food products and other manufacturing products marginally came down during the week.

WPI rose by 0.1 per cent to 208.8 from 208.5 per cent. The index for primary articles, with 22.02 per cent weightage in the WPI increased by 0.6 per cent to 215 from 213.7 the previous week.