The bad news on inflation continues with the wholesale price index (WPI) rising to a 40-month high of 7 per cent for the week ended March 22, raising expectations of higher interest rates and more government intervention to cool prices.
The Inflation rate last stood above this level, at 7.07 per cent, in the week ended December 4, 2004.
The latest figure is well above some estimates including a Reuters forecast of 6.62 per cent and a Bloomberg News Survey projection of 6.64 per cent.
As an immediate measure, the government has withdrawn the duty entitlement passbook (DEPB) scheme benefits on export of basmati rice.
The move, aimed at discouraging basmati rice exports and augmenting domestic availability, comes after two days of an increase in the minimum export price (MEP) of the commodity.
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