Inflation rose to 5.43%, just short of this fiscal's highest at 5.44%, during the week ended December 16 as against 5.32% in the previous week as essential food items like wheat, bajra and arhar and some manufactured goods became dearer.Inflation had stood at 4.62% during the corresponding week of the previous year.Wholesale prices-based inflation has been staying above the 5% mark for about last two-and-a-half months.Before this, inflation had touched its highest level of 5.44% this fiscal on June 17, which prompted the government to relax imports of wheat, pulses and sugar, besides banning exports of sugar to augment supply of these essential commodities.The Wholesale Prices Index (base 1993-94), on which inflation data is based, rose by 0.05% to 207.8 points for the week ended December 16 from 207.7 points in the previous week.Increase in cash reserve ratio by the Reserve Bank, the first phase of which came into effect from December 23, is likely to moderate inflation in the next few weeks.During the week under review, prices of bajra increased by 3%, while barley, wheat, arhar and jowar rose by 1% each. Cereals, on an average, rose by 0.6%, while pulses by 0.2%.However, other items of daily consumption like fruits and vegetables and eggs became cheaper by 2% each. Prices of rapeseed and mustard seed moved up by 1%, while soyabean and raw silk declined by 2% and 1%, respectively.Food products in manufactured category like salt, gur and black tea leaf also became costlier. While unblended black tea leaf rose by 23%, salt became more expensive by 3% and gur by 1%.However, prices of processed tea declined by 8%, rapeseed oil and mustard oil, sugar, imported edible oil rice bran oil and gingelly oil declined by 1% each.Among other manufactured products, copper bars and rods moved up by 12%, while canvas footwear and decorative laminates rose by 8% and 7% respectively. Similarly, prices of PVC insulated cables increased by 9%.However, rubber chappal (slippers) became cheaper by 13%.
