The rate of inflation based on the wholesale price index (WPI) went up to 3.75% for the week ended December 1, as against 3.01% in the previous week, on account of a rise in prices of fruit and vegetables, some manufactured items and petroleum products. The annual rate of inflation stood at 5.36% in the corresponding week a year ago.During the week, bajra prices rose by 3%, while fruit, vegetables, condiments and spices were dearer by 1% each, while fish-marine got cheaper, a ministry of commerce release said. WPI inflation rate for the week ended October 6 was revised to upwards to 3.22%, as against the provisional figure of 3.07%.Prices of aviation turbine fuel shot up by 16%, while naphtha and bitumen became dearer by 9% and 6% respectively. Among the manufactured food items, groundnut oil and coconut oil went up, while khandsari and maida prices declined.The sharp rise in inflation after the Kharif season can be attributed to some supply shocks in primary articles. Besides, some fuel products have added to the rise in the price index, Abheek Barua, chief economist, HDFC Bank said.Inflation is still below the Reserve Bank of India's projection of close to 5% for fiscal 2007-08.Analysts, however, predict a rise in inflationary expectations in the coming months on account of rising crude prices and hardening global food prices.India imports nearly three-fourth of its crude oil requirements, although the government has not allowed state owned oil firms to raise domestic prices despite the spike in international crude rates.Prices of texturised yarn were up by 2%, acids of all kinds moved up by 4%, bright bars by 5%, zinc ingots and foundry pig iron by 3%. On the other hand, some goods such as pipes and tubes were cheaper by 2% and cement prices moderated a little during the week.
