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Inflation Rises to 0.70%

Inflation rose for third consecutive week

An annual inflation rate of 12 per cent, or more, is enough to make anyone break out into a sweat. But, don't worry, that is not where inflation in India is today, that figure is from near-term history -- the previous year's corresponding week's figure. But then the figure was a mammoth 53.8 per cent in 1943 and that was during the famine years. And the present numbers? Well, comfortingly, they are ruling at a 30-year low.

The reason for showing the big numbers is to indicate the contrast with the latest week's figure (during the week ended April 25), revealed today. According to the authorities, India's wholesale price index, was measured at 0.70 per cent, a rise of 0.13 percentage points from last week's figure --  a third straight weekly rise. It is also the eighth consecutive week that the rate has remained below 1 per cent.

Unfortunately, for the masses, the rise was marked by a jump in food and manufactured products prices, among them are tea, wheat, milk, cereals, pulses, fish vegetables and sugar.

Last week's figures had quoted inflation at 0.57 per cent, but the RBI has indicated that it sees inflation in 2009-10 fiscal at 4 per cent. While there are still some signs indicating inflation may fall into negative territory in the near-term, but, keeping that from happening is the relatively strong demand from the hinterland.