Inflation jumped to 4.78 per cent in November driven by rising prices of essential food items like pulses, fruits and vegitables.According to the monthly data released yesterday,the inflation has shot up from 1.34 per cent in the previous month to 4.78 per cent in November, registering a more than three-fold increase. Among the food items which became dearer during the month were urad (24 per cent), moong (14 per cent) and chicken (10 per cent). The monthly data shows that potato prices surged by a whopping 141 per cent in the past eight months, followed by sugar 37 per cent, pulses 32 per cent and onion 20 per cent. Potato and, fruits and vegetables became costlier by 3 per cent. Finance Minister Mr. Pranab Mukherjee attributed the recent spurt in inflation in November to rising prices of food articles. Mr Mukherjee told reporters in New Delhi that inflation has risen high mainly because the food article prices have gone up. Mukherjee further said that rise was more evident in the Consumer Price Index (CPI) than in the Wholesale Price Index (WPI) as food items have higher weightage in the CPI. The Finance Secretary Ashok Chawla said the spike in inflation was on expected lines and does not call for any immediate action. Mr Chawla said rising prices of commodities has always been a matter of concern for the government.Former chairman of the Prime Minister's Economic Advisory Council (PMEAC) Suresh Tendulkar, said that the Reserve Bank could take steps to withdraw liquidity to tame rising prices. The apex bank is slated to announce review of its annual credit policy next month.
News On AIR | December 15, 2009 1:16 PM
Inflation jumped to 4.78