Inflation turns positive after 13 weeks, presents policy dilemma to central bank

According to the government data, India's inflation rate stood at 0.12 percent for the week ended September 5, higher than (-)0.12 percent reported in the previous week. Inflation rate stood at 12.42 percent during the corresponding week a year ago.

During the week under review, prices of food articles such as poultry chicken (up 16 percent), fruits & vegetables (up 8 percent), pork (up 5 percent), condiments & spices (up 3 percent), bajra (up 2 percent) and rice and moong (up 1 percent each) continued to surge.

Among food products, prices of sugar and sooji (rawa) (up 4 percent each), khandsari and bran (all kinds) (up 2 percent each) and maida, atta and gingelly oil (up 1 percent each) rocketed.

Among non-food items, raw silk, cotton seed and raw rubber (up 3 percent), polyester staple fibre (up 5 percent), lead ingots (up 4 percent), material handling equipment (up 6 percent) and electrical relays (up 3 percent) witnessed maximum increase in price.

The prices of bitumen (up 9 percent), furnace oil and light diesel oil (up 4 percent each) and aviation turbine fuel (up 2 percent) also rose.