The wholesale prices at 4.35 per cent climbed faster than the previous week’s 4.07 per cent gain, the Ministry of Commerce and Industry said on Friday in New Delhi.

The data, however, did not capture the rise in petroleum prices announced on February 14, 2008. The wholesale price index-based inflation rate was 4.07 per cent in the week preceding the one under review, and 6.52 per cent in the corresponding week a year ago.

Although inflation remained below the apex bank’s forecast of close to 5 per cent for this fiscal, the central bank last week had said the rate was high by global standards and needs to be brought down further. This is the third week in a row when inflation rate is more than four per cent. Inflation needs to be further slowed as it is still high by global standards, Reserve Bank Deputy Governor Rakesh Mohan said last week.

Likely to rise further

Inflation is likely to quicken further on higher energy and food costs after the government raised gasoline prices last week by about 4.5 per cent, the first increase since June 2006.

“Inflation going forward would move further as the data would reflect petroleum price hike,” Crisil Principle Economist D K Joshi told PTI. “The possibility of inflation rising in the coming weeks is likely to restrain the Reserve Bank of India from signaling any type of monetary easing immediately,” said Kotak Mahindra Bank Ltd Chief Economist Indranil Pan in Mumbai.

Meanwhile, inflation figure for the week ended December 15, 2007 has been revised to 3.84 per cent from the provisional estimate of 3.45 per cent, as wholesale price index finally stood at 216.4 points as against the earlier calculation of 215.6 points.