Growth momentum to continue: RBI

The on-going momentum in economic growth is likely to remain robust in the rest of 2006-07, according to the macroeconomic and monetary developments report released by the Reserve Bank of India today.

High prices of primary food articles, including wheat, pulses, fruits and milk, and manufactured products pushed up inflation in 2006-07.

The central bank said primary articles' contribution to the overall year-on-year inflation, as on January 13, 2007, increased to 34% from 29% a year ago.

The headline inflation, which is based on the wholesale price index, touched 6% from 4.1% at the end of March 2006 and 4.2% a year ago.

"The year-on-year inflation, excluding the fuel group, at 6.6% was above the headline inflation rate of 6% as on January 13, 2007," the apex bank said.

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