Wpi-Based Inflation Rises To 2.27%

The annual point-to-point wholesale price index (WPI)-based inflation rose marginally to 2.27 per cent for the week ended December 15.

Inflation, which had touched a low of 2.21 per cent in the previous week, rose on account of higher prices of primary articles like tea, maize, oilseeds and minerals. Higher prices of textiles and manufactured food products were also responsible for the rising inflation level.

WPI-based inflation was 8.56 per cent in the corresponding week last year. The inflation level based on the final WPI (base: 1993-94=100) for the week ended October 20, was 2.72 per cent, the same as was reported on the basis of the provisional index.

Inflation is expected to hover around 2 per cent due to domestic recession, stable oil prices, lack of purchasing power and the consequent fall in demand. While prices of certain commodities have begun to rise, the high-base effect of last year