Dearer food items and textile products pushed inflation for the week ended April 11 away from the brink of negative inflation.RBI in its monetary policy review announced earlier this week pointed out that with inflationary concerns abating WPI inflation is expected to enter negative for a short patch though it will move up to 4.0% by end of current fiscal.
During the week, prices of raw food rose by 0.5% as tea prices increase by 5%, Bajara by 3%, fruit and vegetables by 2%, and mutton and maize by one per cent each. Even though annual Inflation no longer remains a concern increase in prices of vegetables (2.6%),fruits (0.8%) and cereals (0.3%) is emerging as a major work for policy makers. Prices of vegetables had moved up by almost 25% in the week before, and the spike in prices of essential commodities is expected to play spoilsport for ruling coalition during elections. Prices of manufactured items has also been moving up for the last one and a half months. Textile products like synthetic yarn and sacking bags, chemicals and basic metals became costlier over the week.
