\nSuch a steep rise in the annual rate of inflation, based on wholesale price index, is mainly due to sharp rise in prices of primary articles, including food items. While the index of primary articles rose by 11.8%, that of food items went up by a whopping 16.7%, according to latest data released by the government on Monday for November.
\nIn fact, the weekly data released by the government on food items last Thursday shows that food inflation had shot up by 19.04% in the last week of November as against the same period last year.
\nAccording to Times report, the monthly data shows that potato prices surged 101% during the last one year, arhar by 64%, moong and urad by 50%, and onion by 32%. But minerals, edible oils and leather products have become cheaper since March 2009.
\nFinance minister Pranab Mukherjee attributed the 4.78% spurt in inflation in November to rising prices of food articles. \u2018\u2018Inflation has risen high mainly because of the food article prices have gone up,\u2019\u2019 Mukherjee said.
\nHowever, finance secretary Ashok Chawla said the rising price of commodities has always been a matter of concern for the government, and the government has been taking administrative steps to contain inflation. Chawla added that the latest inflation numbers are not surprising and does not call for any immediate emergency measures at this stage.
\n\u201cThe fact that food inflation was high and that could reflect in the WPI was also known,\u201d Chawla said, adding the government would see whether the rise in inflation was on account of the base effect or is a trend that is likely to continue.
\nThe latest figures, economists feel will force RBI to take harsh measures like making money costly by increasing the interest rates to dampen the demands in the market. Suresh Tendulkar, former chairman of PMEAC, said that the RBI could take steps to withdraw liquidity to tame rising prices. RBI is will review its annual credit policy next month.<\/p>\n","protected":false},"excerpt":{"rendered":"