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Inflation at 6-month high on food prices

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New Delhi, Feb. 22 Higher food prices pushed up inflation to a six-month high of 4.35 per cent in early February. Official data released on Friday showed the Wholesale Price Index for the week up to February 9 was higher than the previous 4.07 per cent, driven by a surge in prices of food articles such as fruits, vegetables, spices and lentils. Among manufactured products, imported edible oil, atta and sooji also turned dearer.

Inflation was reported at 6.52 per cent during the corresponding week last year. Data for the latest reported week, however, did not capture the rise in petroleum prices announced on February 14. The hikes in petrol and diesel prices by Rs 2 and Re 1 a litre respectively are likely to get reflected in the WPI for the week ending February 16.

Despite the increase, inflation is still below the Reserve Bank of India’s upper limit of 5 per cent set for the current fiscal. In its third quarter review of the annual Monetary Policy on January 29, the central bank had, however, noted that risks to inflation from high and volatile international prices of fuel, food and metals appeared intensified.

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