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Pricey Food Drives Inflation to 0.61%

However, inflation arte has remained under one per cent mark

For 10 weeks running inflation has been quite stable, staying well below the one per cent mark. Price rise throughout this period has been marginal, keeping the total figure low. However, there is nothing to cheer the almost-zero-rate inflation as prices of pulses have gone up by 14 per cent, cereals by 12 per cent, and fruits and vegetables by 9 per cent, calculated on a year-on-year basis.

Fruits, vegetables, tea, cereals and spices have become costlier and this is showing in the latest inflation figures for the week that ended on May 9 -- the rise was by 0.13 per cent, from 0.48 per cent the previous week to this week's 0.61 per cent.

On the manufactured goods front too the price rise has been inescapable with gur, sugar, imported edible oil, and steel ingots prices rising.

The good thing about it all is that the monetary stance buy authorities remains soft and that leads to lower interest rates by banks -- in recent days many banks have announced a cut in rates.

Going forward there is a chance that there will be a fall in prices of manufactured goods, but the essential items will remain high priced.