Inflation steady at 6.46%

Inflation based on the wholesale price index (WPI) remained unchanged at 6.46% for the week ended March 10 as rise in prices of some items was neutralised by decline in others.

Even the unchanged inflation rate seems quite high at over 6%. It stood at just 3.80% a year ago.

The official data, released today, came amid a debate on overheating triggered by two key economic planners - Montek Singh Ahluwalia, deputy chairperson, Planning Commission and C Rangarajan, chairman, Prime Minister's Economic Advisory Council.

However, the fears on overheating were down played by Prime Minister Manmohan Singh, who had said rise in inflation is a momentary phenomenon amid positive impulses in the economy.

Among food products, prices of vegetables, fruits, eggs, mutton, fish-marine, bajara, condiments and spices moved up, while those of wheat, gram, urad and moong declined.

Even in manufactured category, some food products like oil cakes and khandsari became expensive, while others like gur were cheaper.

Among other items, sunflower, linseed, rubber, insulated cables, power driven pumps became costlier, while prices of copra, groundnut seed, telephone cables fell.

Interestingly, the data did not show price movements of cement, which occupied much attention of the policy makers for major portion of this week.