Inflation spikes further

India's inflation, based on the Wholesale Price Index (WPI), rose further in the second week of April even as the Government reiterated its resolve to contain inflation by taking all the necessary steps. The annual inflation accelerated to 7.33% in the week ended April 12, from the previous week's gain of 7.14%, the Commerce & Industry Ministry said. Inflation was 6.34% during the corresponding week of the previous year.

The WPI for All Commodities rose by 0.1% to 226.9 from 226.6 in the week ended April 5. The index for Primary Articles advanced 0.5% to 237.1 while the index for Fuel & Power was up marginally at 342.1. The index for Manufactured Products was unchanged at 197.6 while the index for Minerals Group surged 5.8% to 630.2 due to higher prices of iron ore and other minerals.

Meanwhile, the Government revised inflation rate for the week ended Feb. 13 to 5.66% from a preliminary estimate of 4.89%. The WPI for the same period stood revised at 220.4 as against the earlier forecast of 218.8. The Centre also said that the annual average rate of inflation during the year ended March 2008 works out to 4.51% compared to 5.42% during the previous fiscal year.

The Government will take all steps to reverse the rising trend in inflation, Prime Minister Dr. Manmohan Singh told allies of the ruling Congress-led coalition at a meeting in New Delhi. The Prime Minister also said that the Government is confident of increasing procurement of foodgrains this year. He said that indications are of improved food production, which will further contribute to increased food procurement.

Separately, Finance Minister P. Chidambaram told the parliament that the Government will seek to maintain the country's strong economic growth momentum and will take more steps to curb inflation. The Finance Minister also expressed confidence that inflation will moderate over time as the impact of fiscal and monetary measures kick in.