Higher prices of some manufactured and fuel items pushed the inflation up to 3.5 per cent for the week ended December 22 as compared to 3.45 per cent in the previous week.

The wholesale price based index stood at 5.78 per cent in the corresponding week a year ago. Despite the marginal increase in the index, it remained well below RBI projection of close to 5 per cent for the current fiscal.

During the week, furnace oil got expensive by 5 per cent while bitumen and naptha rose by four per cent and three per cent respectively.

Industry concerns

In the food article segment, prices of coffee and vegetable moved up, while gram, moong, urad and rice became cheaper. Terming food prices as a cause of concern, Finance Minister P Chidambaram had said “All other prices are under control. There have been occasional flare ups. Onion prices go up one day and come down another day. Edible oil goes up one day and comes down the other.

“I am worried about the supply-demand mismatch. We have requested the ministries concerned to do a more rigorous and realistic assessment of supply and demand,” he had remarked.