HomeInflation dipped to (-) 1.74 per cent for the week ended August 1, the lowest in three decades, even as prices of essential food items like pulses, cereals fruit and vegetables continued to rise.
The wholesale price index during the corresponding week a year ago was as high as 12.91 per cent, while in the previous week, it stood at (-) 1.58 per cent.
During the week, prices of barley, jowar and gram rose by two per cent and condiments and spices, arhar and fruits and vegetables by one per cent each.
“There is a risk of high inflation going forward. So, by the end of March we can see inflation at 7.5 per cent,” said Abheek Barua, chief economist at HDFC Bank.
At the same time, imported edible oil, sugar and unrefined oil got expensive.
“Food and vegetable prices are jumping up sharply. The government can look at offloading food stocks in order to control inflation. I think inflation next year will stay in broadband zone,” said Indranil Pan, chief economist at Kotak Mahindra Bank.
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