New Delhi, April 22: India's inflation averaged 4.5 percent in the
financial year that ended on March 31, 2008, lower than an average 5.4
percent in the previous year, the finance minister said on Tuesday.
In a written reply to parliament, Palaniappan Chidambaram said the
quarterly average of wholesale price-based inflation increased to 5.2
percent during January-March, from 3.4 percent in October-December and 4.1 percent in July-September of 2007.
India's headline inflation hit a three-year high of 7.41 percent in
late March, but eased to 7.14 percent in the 12 months to April 5, as
the government cut import duties on edible oils and banned export of
rice and cement to increase supplies.
"Containment of inflation remains high on the agenda of the
government," Chidambaram said.
The Reserve Bank of India said on Thursday it was raising the cash
reserve ratio, the proportion of deposits banks must keep with it, by
50 basis points to 8 percent. The rise will take place in two phases,
on April 26 and May 10.
"The monetary policy of Reserve Bank of India, while being conducive
to economic growth, has attempted to contain inflationary expectations
arising out of uncertainties in domestic and international
environment," Chidambaram said.
In a separate reply, Junior Finance Minister Pawan Kumar Bansal said
the price index for 30 essential commodities rose 5.27 percent during
2007/08 compared with 3.64 percent in the previous fiscal year.
Food price index as a whole rose 7.26 percent in 2007/08.
He said the price index for rapeseed and mustard oil were up by 31.6
percent, while that of groundnut oil rose 12.7 percent and vanaspati
by 11.5 percent during 2007/08. Among pulses, the price index for
masur rose 30 percent and arhar by 15.2 percent.
The index for rice was up by 8.2 percent while it was 5.1 percent
higher for wheat.
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