Inflation inches up to 5.38%

Increasing cost of fuels, including LPG, pushed up inflation to 5.38 per cent for the week ended December 6. The wholesale price index (WPI) based inflation rose for the fourth consecutive week despite a fall in the prices of vegetables, rice and some edible oils.

The WPI-based inflation was at 5.25 per cent in the previous week and was at 3.27 per cent in the corresponding week last year.

The inflation level based on the final index for the week ending October 11 was at 5.01 per cent as against 4.95 per cent reported on the basis of the provisional index.

Prices of primary products fell by 0.4 per cent on account of a 0.5 per cent drop in the prices of food items. The index for non-food items rose by 0.2 per cent.

The index for fuel, power, light and lubricants rose by 0.6 per cent due to an 11 per cent rise in naphtha prices, 5 per cent rise in light diesel oil, 4 per cent hike in bitumen prices and 1 per cent rise in the cost of liquefied petroleum gas.