Hopes from the previous week’s data of prices easing turned out to be a fleeting relief for the Centre as inflation rose despite high base of 6.34 per cent in the year ago period as global commodity prices continued to rise. 
The Wholesale Price Index-based inflation, which dropped marginally from a 40-month high of 7.41 per cent to 7.14 for week ended April 5, again rose despite host of fiscal and monetary measures announced by the government to control prices. Besides fiscal measures, RBI might also further tighten money supply in its annual policy scheduled for Tuesday. It has already announced 0.50 per cent hike in madatory cash deposits of banks, which would suck out Rs 18,500 crore from the system.

Even though inflation started crossing five per cent mark in the latter part of February last fiscal and stood at more than seven per cent towards close of the year, average inflation was quite low at 4.51 per cent against 5.42 per cent in 2006-07. Among important food items, prices of jaggery (gur) surged by 12 per cent, followed by fish marine, sooji, oil cakes, maida, khandsari and coconut oil.