Inflation rises to 0.26% on higher food prices

Inflation rose to 0.26 per cent for the week ended April 11 from 0.18 per cent in the previous week as essential food articles like cereals, eggs, salt, and fruit and vegetable turned dearer.

Wholesale price-based inflation stood at 7.95 per cent in the corresponding week a year ago.

Inflation, still nearly the lowest in three decades during the week, does not take into account policy rate cuts announced by the RBI in its annual credit policy.

The RBI slashed the short-term lending (repo) and borrowing (reverse repo) rates by 25 basis points each to 4.75 per cent and 3.25 per cent, respectively.

During the week, prices of raw food as a whole rose by 0.5 per cent due to tea prices increasing by 5 per cent, bajara by 3 per cent, fruit and vegetables by 2 per cent, and mutton and maize by one per cent each.

However, the prices of fuel items remained unchanged in the week.