Inflation up at 4.54%

Inflation continued to rise for the second week in succession to 4.54 per cent for the week-ending November 26, compared with 4.32 per cent during the previous week. The increase is being attributed to a low-base effect.

Inflation stood at 7.30 per cent during the corresponding week of the previous year.

"The increase in inflation has been marginal and is entirely due to the base effect. The effect will be more visible in the coming months and should result in a secular rise in inflation over the next one-two months," D K Joshi, senior economist, Crisil said.

Inflation had declined during the corresponding week last year and the low base now manifests itself in the rising trend of inflation this year.

The index for primary articles rose by 0.3 per cent due to higher prices of tea which increased by 4 per cent. Prices of fruit and vegetables increased by 1 per cent each.

The index for machinery and mineral products rose by 0.2 per cent due to higher prices of complete tractors and cranes. The index for textiles group rose by 0.2 per cent on account of higher prices of sacking bags and hessian cloth.

The wholesale price index rose by 0.1 per cent to 198.6, compared with 198.5 for the previous week.

For the week ended October 1, the final wholesale price index stood at 197.6 compared with the provisional estimates of 196.9.