Inflation jumps to 7.31 per cent in Dec

STAFF WRITER 12:59 HRS IST

New Delhi, Jan 14 (PTI) Wholesale prices-based inflation leaped to 7.31 per cent in December, shooting past RBI's forecast of 6.5 per cent-level by this fiscal end, as food items such as sugar, potatoes and pulses turned costlier.

Overall inflation in November was 4.78 per cent.

However, food inflation (prices of non-processed food articles) measured separately for the week ending January 2, eased a bit to 17.28 per cent from 18.22 per cent a week ago.

If this trend in food inflation continues in the weeks ahead, then overall inflation may also fall.

Sugar, whose prices have become a cause of concern for the government with retail prices nearing Rs 50 a kg, rose 53.98 per cent in December year-on-year. Yesterday, the government announced a slew of measures to tame sugar prices.

In the month of December, food inflation stood at 19.