Inflation rises marginally to 0.31 percent, rate cuts eyed

According to the latest government data, India's most widely watched inflation measure, the wholesale price index-based (WPI) inflation rate rose marginally from 0.27 percent for the week ended 14 March to 0.31 percent for the week ended March 21.

The inflation rate, which had touched a 13-year high of 12.91 percent last August due to global slump and slowdown in domestic demand, was 7.85 percent during the corresponding period a year earlier.

The index for the Primary Articles Group (which has a weight of 22.02 percent on the WPI) increased marginally compared to the previous week due to higher prices of non-food articles such as soyabean (up 11 percent), niger seed (up 3 percent), raw rubber (up 2 percent) and copra, castor seed, groundnut seed, rape & mustard seed, gingelly seed and raw cotton (up 1 percent each).

However, the prices of raw silk slipped by 1 percent.

Food articles such as fruits & vegetables, barley and jowar also declined by 2 percent each.