Surging prices of vegetable, fruits and pulses hit the common man hard while dearer steel and metals pushed the inflation to a 40-month high of 7.41 per cent
NEW DELHI: Surging prices of vegetable, fruits and pulses hit the common man hard while dearer steel and metals pushed the inflation to a 40-month high of 7.41 per cent, prompting the government to take more price control measures like ban on cement exports.
The common man was affected most by the surging prices of vegetables that showed an increase of 4.1 per cent during the week, while spices and pluses became dearer by 1.2 per cent and 1.8 per cent respectively in the wholesale market.
Price rise in these commodities would be much higher in the retail market going by the traditional difference in WPI and consumer price index.
Steel prices surged by 5.6 per cent during the week even as government said that it could consider banning the metal next week, while hoping that ban on edible oils,rice and pulses taken earlier this month would start yielding results and improve availability to provide relief to consumers.
Coinciding with the slowing down in industrial growth to 8.6 per cent in February, 2008, the inflation cast a shadow on the foreign trade policy announced by the government wherein Commerce Minister Kamal Nath said that domestic availability of goods would get the top priority.
Analysts and bankers say that the high rate in price rise could have a reflection on the upcoming monetary policy, to be announced by the Reserve Bank of India on April 29.
Commenting on the inflation data released on Friday, Kapil Sibal, Science and Technology Minister, said that the issue was not discussed in the Cabinet Meeting but said that government did not have a magic wand to fight the global trends.
Prime Minister Manmohan Singh on Thursday admitted surging food prices were making it difficult to manage inflation but ruled out any "blind controls".
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