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207087
Wed, 09/14/2011 - 13:04
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https://www.oananews.org//node/207087
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Overall inflation soars to 9.78% in August
New Delhi, Sep 14 (PTI) Headline inflation inched closer
to the double-digit mark in August, rising to 9.78 per cent on
the back of soaring prices of food and manufactured products,
which may prompt the RBI to continue with its monetary
tightening policy.
Overall inflation, as measured by the Wholesale Price
Index (WPI), stood at 9.22 per cent in July. The rate of price
rise stood at 8.87 per cent in August, 2010.
As per data released by the government Wednesday, the
overall inflation figure for June this year has been revised
upward to 9.51 per cent from the provisional estimate of 9.44
per cent.
On an annual basis, food items became 9.62 per cent more
expensive during the month under review. Onions grew 45.29 per
cent costlier, while fruit prices were up 22.82 per cent and
the rates for potatoes rose by 12.53 per cent.
Overall, vegetable prices witnessed 11.80 per cent
inflation during August, 2011.
Inflation in overall primary articles, which have a share
of over 20 per cent in the WPI basket, stood at 12.58 per cent
in the month under review.
Non-food primary articles, which include fibres, oil
seeds and minerals, became dearer by 17.75 per cent.
Prices of manufactured products, which have a weight of
around 65 per cent in the WPI basket, went up by 7.79 per cent
year-on-year in August.
Inflation in manufactured products has been steadily
rising since February this year, when it crossed the 6 per
cent-mark.
Among manufactured items, edible oil became dearer by
12.94 per cent, tobacco product prices rose by 13.17 per cent,
cotton textiles grew 16.86 per cent more expensive and wood
and wood products were 9.72 per cent costlier year-on-year.
In addition, iron and semis grew dearer by over 20 per
cent, while prices of basic metal alloys rose by 11.56 per
cent during August, 2011.
Inflation in the fuel and power segment stood at 12.84
per cent year-on-year in the month under review, as per the
index.
This is the ninth consecutive month when headline
inflation has been above the 9 per cent-mark.
The jump in inflation to close to double digits is likely
to put pressure on the Reserve Bank to continue with its
policy of monetary tightening, according to experts.
The apex bank has already hiked key policy rates 11 times
since March, 2010, to tame inflation. The bank's next
mid-quarterly policy review is scheduled for September 16.
India Inc has said the string of rate hikes, which have
raised the cost of borrowing, have acted as a dampener to
fresh investment and hindered growth.
Industrial production plunged to a 21-month low of 3.3
per cent in July. Meanwhile, economic growth during the
April-June period stood at 7.7 per cent, the slowest expansion
rate in the past six quarters.
Both the government and the RBI have projected headline
inflation to remain elevated till the third half of the
current fiscal, mainly on account of pressure from
international commodity prices. PTI PPB
HMI
to the double-digit mark in August, rising to 9.78 per cent on
the back of soaring prices of food and manufactured products,
which may prompt the RBI to continue with its monetary
tightening policy.
Overall inflation, as measured by the Wholesale Price
Index (WPI), stood at 9.22 per cent in July. The rate of price
rise stood at 8.87 per cent in August, 2010.
As per data released by the government Wednesday, the
overall inflation figure for June this year has been revised
upward to 9.51 per cent from the provisional estimate of 9.44
per cent.
On an annual basis, food items became 9.62 per cent more
expensive during the month under review. Onions grew 45.29 per
cent costlier, while fruit prices were up 22.82 per cent and
the rates for potatoes rose by 12.53 per cent.
Overall, vegetable prices witnessed 11.80 per cent
inflation during August, 2011.
Inflation in overall primary articles, which have a share
of over 20 per cent in the WPI basket, stood at 12.58 per cent
in the month under review.
Non-food primary articles, which include fibres, oil
seeds and minerals, became dearer by 17.75 per cent.
Prices of manufactured products, which have a weight of
around 65 per cent in the WPI basket, went up by 7.79 per cent
year-on-year in August.
Inflation in manufactured products has been steadily
rising since February this year, when it crossed the 6 per
cent-mark.
Among manufactured items, edible oil became dearer by
12.94 per cent, tobacco product prices rose by 13.17 per cent,
cotton textiles grew 16.86 per cent more expensive and wood
and wood products were 9.72 per cent costlier year-on-year.
In addition, iron and semis grew dearer by over 20 per
cent, while prices of basic metal alloys rose by 11.56 per
cent during August, 2011.
Inflation in the fuel and power segment stood at 12.84
per cent year-on-year in the month under review, as per the
index.
This is the ninth consecutive month when headline
inflation has been above the 9 per cent-mark.
The jump in inflation to close to double digits is likely
to put pressure on the Reserve Bank to continue with its
policy of monetary tightening, according to experts.
The apex bank has already hiked key policy rates 11 times
since March, 2010, to tame inflation. The bank's next
mid-quarterly policy review is scheduled for September 16.
India Inc has said the string of rate hikes, which have
raised the cost of borrowing, have acted as a dampener to
fresh investment and hindered growth.
Industrial production plunged to a 21-month low of 3.3
per cent in July. Meanwhile, economic growth during the
April-June period stood at 7.7 per cent, the slowest expansion
rate in the past six quarters.
Both the government and the RBI have projected headline
inflation to remain elevated till the third half of the
current fiscal, mainly on account of pressure from
international commodity prices. PTI PPB
HMI
