Inflation increases to 10.72%
The wholesale price index based inflation reverses its trend after declining for five weeks. It rises to 10.72% for the week ended October 25 as compared to 10.68% a week ago.
The annual rate of inflation is measured by the fluctuation in wholesale prices. The recent rise in inflation is due to the increase in prices of some primary articles. Primary articles contribute 22 per cent in the overall inflation. Prices of food and non-food category also increased marginally leading to the increasing inflation.
Manufactured product category continued its declining trend which contributes 63.75% in WPI. However, the index of fuel and power remained unchanged. Prices of textiles, paper and paper products, chemicals and chemical products and non-metallic mineral products witnessed decline.
Economists believe that inflation would further decrease in coming times when the new crop would enter the market. They ruled out any effect of liquidity infusion and interest rate cut on the inflation rate. Chief economist at NCDEX, Madan Sabnavis said that prices may fluctuate following variation in arrivals in the market.