Inflation surged by 0.81 per cent to over 11-month high of 5.92 per cent for the week ended March 8 as essential items like fruits and vegetables and pulses as well as some manufactured items turned expensive. The FM Mr.Chidambaram, has repeatedly reiterated that inflation has been the big worry for the government.Also, the Left parties has been gunning for the UPA government for its alleged lacklustre performance in curbing price increase
The whopping rise in inflation rate would not allow RBI to go for soft monetary stance as it is way above the central bank's tolerance level of five per cent for this fiscal, analysts said.
The wholesale prices-based inflation stood at 5.11 per cent in the previous week.
The spurt in inflation rate happened despite a high base of 6.51 per cent a year ago.
During the week, food articles like arhar, gram, moong, maize, fruits and vegetables as well as condiments and spices went dearer.
Prices of furnace oil, which is industrial oil, went up by 2 per cent. Manufactured products like imported edible oil, coconut oil, and mustard oil also turned dearer.
The Government had announced a ban on export of all edible oils with effect from March 17 for a period of one year to curb their rising prices.
The whopping rise in inflation rate would not allow RBI to go for soft monetary stance as it is way above the central bank's tolerance level of five per cent for this fiscal, analysts said.
The wholesale prices-based inflation stood at 5.11 per cent in the previous week.
The spurt in inflation rate happened despite a high base of 6.51 per cent a year ago.
During the week, food articles like arhar, gram, moong, maize, fruits and vegetables as well as condiments and spices went dearer.
Prices of furnace oil, which is industrial oil, went up by 2 per cent. Manufactured products like imported edible oil, coconut oil, and mustard oil also turned dearer.
The Government had announced a ban on export of all edible oils with effect from March 17 for a period of one year to curb their rising prices.
