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Inflation rises in February
16 March 2011: Inflation, as measured by the wholesale price index, rose to 8.31 per cent in February 2011, led by an increase in fuel and manufactured product prices and economists say sticky inflation will force the Reserve Bank of India (RBI) to increase interest rates in its policy review later this week.
Data released by the commerce and industry ministry on Monday showed the wholesale price index rose an annual 8.31 per cent in February, rising marginally from January's 8.23 per cent. The inflation rate stood at 9.42 per cent in February 2010. The government also revised upwards the December inflation data to 9.41 per cent from the earlier 8.43 per cent and analysts said this showed that price pressures remain firm.
While food inflation, which shot up to 18.32 per cent in late December 2010, has moderated on better supply of vegetables and crops, overall inflation still remains high. The fuel and power index group rose by 0.7 per cent to 152.3 from 151.3 for the previous month due to higher prices of aviation turbine fuel (7 per cent), furnace oil and petrol (3 per cent each), naphtha (2 per cent) and light diesel oil (1 per cent). The index for manufactured products group rose by 1.3 per cent to 131.6 from 129.9 for the previous month.
Source: Times of India