Inflation moves up to 4.45% on costly food items

The wholesale price index (WPI) based inflation rose to 4.45% for the week ended July 28, 2007 compared with 4.36% the previous week, due to higher food and manufactured product prices.

The annual inflation rate was 4.72% during the corresponding week last year.

Inflation for the week ended June 2 was revised upwards to 5.09% from the provisional figure of 4.80% reported earlier.

Prices of food items like fruits and vegetables, mutton, eggs, masur and
bajra moved up. Prices of food products in the manufactured category like coffee and tea, baby food, sooji, maida and flour also went up, along with coffee powder - up 29%, baby food 18%, sooji 4%, maida and flour up 2% each.

Among manufactured items, prices of most chemicals, chemical products, machinery and machine tools also rose. Prices of chana dal increased, while those of arhar dal remained steady in retail markets across the country during the week.

However, tobacco products and beverages prices declined. Beer and alcohol prices were down 3%. Prices of most basic metals alloys also dipped. Prices in the fuel, power, light and lubricants category remained unchanged.

Inflation remains within the Reserve Bank of India's medium-term target of 4-4.5%.