Indian inflation rises to 4.47 percent

10 Apr, 2004

India's annual wholesale price inflation rose in the year to the week ended March 27 on the back of higher food and electricity prices.
Government data released on Friday showed inflation, as measured by the wholesale price index, rose to 4.47 percent, higher than the median estimate of 4.24 percent in a Reuters poll of 23 analysts released on Wednesday.
It was the first rise after four consecutive weekly falls.
Inflation was 4.30 percent in the week ended March 20 and 6.49 percent in the corresponding week last year.
India's wholesale price inflation is widely tracked by economists because the data is released weekly and tracks a large basket of goods. The government also uses wholesale inflation to adjust allowances and salaries.
Analysts say inflation is likely to hover around four percent-plus in the short term as international oil prices and a booming economy are likely to exert upward pressure on prices.
The Indian economy, Asia's third-largest, is expected to grow at 8.1 percent in the fiscal year to end-March, up from 4.0 percent last year when the worst drought in 15 years cut growth.
The economy grew 10.4 percent in the October-December quarter, compared with 2.0 percent a year earlier.
The index for food rose 0.7 percent to 179.3 in the week to March 27 from 178.1 a week earlier due to higher prices of pulses, fruits and vegetables.
Fuel, power, light and lubricants also rose marginally due to higher electricity prices.
The index for manufactured goods, which accounts for more than 50 percent of the overall index and reflects demand in the economy, rose to 161 from 160.7.
The government also revised the wholesale price inflation figure for the week to January 31 to 5.91 percent from 5.80 percent.

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