Agencies
New Delhi, May 16:
Inflation rose to near 44-month high of 7.83 per cent for the week ended May 3, against 7.61 per cent in the previous week, mainly on account of rising prices of essential food items and some manufactured products.
Inflation was last above this level at 7.87 per cent on September 11, 2004 as per provisional figures and 7.86 per cent for the week ended September 18, 2004, according to final figures.
The WPI based index inflation stood at 5.74 per cent in the corresponding week a year ago.
During the week, prices of food articles like fruits and vegetables, spices, coffee, masoor rose, compounding worries of the government and RBI amid a slowdown in industrial growth.
Among food articles, fruits and vegetables went up by 3 per cent, coffee 6 per cent, maize 4 per cent, spices and masoor by 1 per cent each. Even in manufactured category, prices of food articles like atta, coconut oil and khandsari went up.
However, prices of cement, iron and steel declined, giving some respite to the government. Prices of some industrial fuels like naphtha, furnace oil and light diesel oil also shot up.
Govt's steps ineffective, says BJP
As inflation continued its upward trend, the BJP on Friday charged the Government with "failure" in arresting price rise and demanded that essential food items be supplied to all sections of society through ration shops at reasonable prices. The main Opposition party said inflation rising to a 44-month high of 7.83 per cent "certifies the ineffectiveness of the various fiscal measures adopted by the UPA government" in the last few days.
"The Congress-led Government has failed miserably and has betrayed the common man on whose name it came to power. It is high time some concrete measures are taken to ease the burden on the common man," BJP spokesperson Prakash Javadekar said. He asked the Government to supply through ration shops five kg each of edible oil and pulses and enough quantity of rise, wheat and sugar at reasonable prices to all sections of society.
"It should be done even if the Government has to pay subsidies," he added. Besides, he wanted the UPA Government to adopt the policy of revenue neutralisation on petroleum products. "Every time crude oil prices go up in the international market, Government profits because of ad valorem duty," he added.
On reported remarks by certain ministers that BJP-ruled states should also take the blame for price rise, he said the Congress-led Government was now putting the blame on states after the situation went out of control. "Its just like US President George W Bush blaming India to woo his electorate. Bush and Manmohan Singh government have the same mindset," he added.