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India's consumer price inflation rises to 10.79 percent

Source : IANS
Last Updated: Tue, Feb 12, 2013 09:20 hrs

New Delhi, Feb 12 (IANS) Inflation based on the consumer price index (CPI) rose to 10.79 percent in January as compared to 10.56 percent in the previous month, on account of a sharp increase in prices of vegetables, sugar and oils and fats government data showed Tuesday.

Vegetables became costlier by 26.11 percent. Sugar became costlier by 12.95 percent year-on-year.

Prices of oil and fats surged by 14.98 percent and cereals became costlier by 14.90 percent. Prices of pulses jumped by 12.76 percent.

The price rise was sharper in rural areas. The Consumer Price Index-based inflation for rural areas increased 10.88 percent in January as compared to 10.74 percent in the previous month.

However, for urban areas consumer price inflation grew by 10.73 percent in the month under review as compared to 10.42 percent in the previous month.

Vegetables became costlier by 25.35 percent year-on-year in rural areas while in urban areas the increase was 27.81 percent.

Prices of oils and fats increased by 16.03 percent in rural areas while it increased by 12.82 percent in urban areas.

Sugar prices increased by 13.13 percent in rural areas, while it increased by 12.40 percent in urban areas.

The wholesale price index (WPI)-based inflation had moderated to a three-year low of 7.18 percent in December on the softening in the price rise of fuel and manufactured goods.

The WPI-based inflation, the country's main indicator of price rise, was at 7.24 percent in November and 7.74 percent in corresponding month of previous year. This was the lowest rate of inflation since December 2009.

The WPI data for January is expected Thursday.

Inflation has remained at an elevated level despite a tight monetary policy adopted by the Reserve Bank of India (RBI).

The Reserve Bank of India (RBI) in its monetary policy last month had slashed key interest rates by 25 basis points and released Rs.18,000 crore additional liquidity into the system.

The apex bank had forecast the March-end WPI inflation at 6.8 percent.

In another development, India's industrial output contracted 0.6 percent in December 2012, dragged by deceleration in production in mining and manufacturing sectors. In the corresponding month of 2011, this had registered a growth of 2.7 percent.




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