Inflation up 8.98% in March

It was at 8.31 per cent in February this year. Planning Commission Deputy Chairman Montek Singh Ahluwalia said “the rise in inflation is a matter of concern. It has not come down as we had expected. There may be need for more fiscal and monetary measures to get rid of supply constraints.”

He cautioned that if inflation remained above six per cent it would be difficult to achieve the targeted 9 per cent growth rate for the economy in the current fiscal 2011-12. The surge in overall inflation was primarily fuelled by high prices of key food items like vegetables, milk and fruits and manufactured items. Food inflation, which accounts for nearly 15 per cent of overall inflation, stood at 8.28 per cent for the week ended April 2.

According to latest data, index of industrial production for April-February last fiscal stood at 7.8 per cent and factory output dipped to 3.6 per cent in February as compared to 3.9 in January, 2011. Exuding confidence of maintaining  growth momentum this fiscal, Ahluwalia said, “Between 8.6 to 9 per cent (GDP growth this fiscal) there is no big deal. I think the down side of 9 per cent is more relevant”, he said adding it will not be “way off” (the 9 per cent mark).

Onions: 7.74 percent
Vegetables: 5.41 percent
Fruits: 2.11 percent
Potatoes: (-) 2.73 percent
Milk: 4.05 percent
Eggs, meat, fish: 11.02 percent
Cereals: 3.49 percent
Rice: 2.2 percent
Wheat: (-) 1.05 percent
Pulses: (-)4.76 percent