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India's inflation rate remained positive for the seventh straight week, rising to 1.51% for the week ended October 17. In the preceding week, it was 1.21%.
The annual rate of inflation was 10.82% for the corresponding week of the preceding year, say data released Thursday by the Ministry of Commerce and Industry.
The build-up inflation during this fiscal year so far increased to 5.95% from 5.25% in the corresponding period last year. The 52-week average inflation for the week ended October 17 was 2.33%, the data showed.
Going by provisional figures, the wholesale price index or WPI for all-commodities remained unchanged at its previous week's level of 242.2.
The WPI-based inflation rose, due to the higher prices of tea, mutton, maize, arhar, condiments and spices, bitumen and some manufactured products.
The final estimate of inflation for the week ended August 22 was lowered to 0.17% from the preceding week's provisional figure of minus 0.21%.
The drop in the prices of fish-marine under the "Food Article" category pulled the growth rate of index for Primary Articles to 0.1% from the previous week's level. However, the prices of tea, mutton, maize, arhar, condiments and spices, as also moong, moved up.
The index for fuel, power, light and lubricants fell by 0.1% due to the lower prices of aviation turbine fuel, furnace oil, and light diesel oil. However, the price of bitumen increased.
The index for Manufactured Products rose by 0.1%, due to the higher prices of batteries, rice bran oil, calcium ammonium nitrate n-content, imported edible oil, gur, oilcakes, liquid chlorine and zinc ingots, whereas those of PVC resins, steel ingots MS bars and rounds, butter, groundnut oil, basic pig iron, as also foundry pig iron, declined.
Reserve Bank of India or RBI Governor Duvvuri Subba Rao, during the second quarter review of the monetary policy for the current fiscal on Tuesday, projected WPI inflation at 6.5% with an upside bias at the end-March next year, keeping in view the global trend in commodity prices and the domestic demand-supply balance. This is higher than the 5% WPI inflation projected in the First Quarter Review of July this year, as the upside risks have come about.
In its monetary review, the RBI kept all the key rates unchanged. However, it raised the statutory liquidity ratio or SLR, the minimum required investment by banks in government securities, to 25% from 24% of their NDTL effective November 8 last year.
The Governor said, the RBI, as always, would endeavor to ensure price-stability and anchor inflation-expectations. The conduct of monetary policy would continue to condition and contain the perception of inflation in the range of 4.0-4.5%. This would be in line with the medium-term objective of 3.0% inflation consistent with India's broader integration with the global economy.
The RBI said it would continue to monitor the price situation in its entirety and would take measures as warranted by the evolving macroeconomic conditions, swiftly and effectively.
Assuming a modest decline in agricultural production and a faster recovery in industrial production, the apex bank projected fiscal 2010 economic growth at 6% with an upside bias, in line with the projections made in the First Quarter Review of July 2009.
Finance Minister Pranab Mukherjee, while responding to the measures, said the government would continue with the stimulus packages till the economy was back on a firm recovery path. On economic growth, he said, he would prefer to go with the growth projection of 6.5% to 6.75% given by the Prime Minister's economic advisory council, headed by Rangarajan, a retired Governor of the RBI.
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