Inflation rises to 7.83%

There is no respite for the common man from rising prices. Despite the government's efforts to control runaway price-rise, inflation rose to a 44-month high of 7.83 per cent for the week ended May 3, against 7.61 per cent in the previous week, mainly on account of rising prices of essential food items and some manufactured products.
Inflation was last above this level at 7.87 per cent on September 11, 2004 as per provisional figures and 7.86 per cent for the week ended September 18, 2004, according to final figures.
The WPI based index inflation stood at 5.74 per cent in the corresponding week a year ago.
During the week, prices of food articles like fruits and vegetables, spices, coffee, masoor rose, compounding worries of the government and RBI amid a slowdown in industrial growth.
Among food articles, fruits and vegetables went up by 3 per cent, coffee 6 per cent, maize 4 per cent, spices and masoor by 1 per cent each. Even in manufactured category, prices of food articles like atta, coconut oil and khandsari went up.
However, prices of cement, iron and steel declined, giving some respite to the government.
Prices of some industrial fuels like naphtha, furnace oil and light diesel oil also shot up.
The Friday inflation data shook the stock markets too as the Sensex that was up by over 300 points in the morning, slipped into the red.
Last week, Finance Minister P Chidambaram had said that the prices of essential commodities had begun to come down and this would be reflected in the inflation index after some time.
He had said that the inflation figures released last Friday had come as a 'big relief' as it showed that the prices have stabilised.
Meanwhile, reports said that retail food prices had generally remained steady in the early part of May, despite the rise in inflation.
Barring groundnut oil, prices of 13 essential commodities in Delhi, Mumbai, Kolkata and Chennai retail markets remained steady during the week ended May 9, according a government statement.
Prices of pulses and edible oils that have risen in the last few weeks due to short supply of the commodity in the country have remained unchanged.
In order to arrest rising food prices, the government on March 31 had cut the import duty on all edible oils. It extended the ban on export of pulses for one more year. Last week, it also suspended chana, potato, soya oil and rubber from futures trading.
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