The wholesale index-based inflation rate is further increased to 12.44 per cent. It was recorded 12.01 per cent in the previous week. The inflation rate was 4.39 per cent in the corresponding period in 2007. The growing rates of food, fruits and fuel prices have contributed in the increased inflation rate.

The prices of fruits increased by 8.9 per cent for the week ended August 2. The prices of maize, moong, urad and other spice went up by 4 per cent and 3 percent respectively. The prices of textile and cement were also increased during this week.

The finance ministry has expressed concerns over the ever increasing price rate. It apprehended further rise in inflation after the implementations of recommendations of 6th pay commission. The government has decided to increase the salaries of center government employees from August 15. The salary hike will further put pressure on exchequer by Rs 21,000 crore. The finance ministry has termed this price rise as shocking because the prices remained stable during last four weeks. 

The former Chairman of Prime Minister's Economic Advisory Council C Rangarajan has also expressed concerns over price rise. He said that the price rise can touch 13 per cent in near future. Some other economists also blamed turbulence in some parts of country for price rise.