Inflation Figure for April 2012 surged to 7.23 Per Cent

India’s overall inflation for the month of April 2012 swelled to 7.23 per cent. The rising figure owes to higher prices of food items, manufactured goods and fuels. The Wholesale Price Index (WPI) was at 6.89 percent in March 2012. The inflation figure for February was also revised to 7.36 per cent from 6.95 per cent earlier.

The inflation in overall food items accelerated by 10.48 per cent as prices of vegetables jumped by 60.97 per cent, milk rose by 15.51 per cent and the cost of eggs, meat and fish surged by 17.54 per cent.

The rising inflation figure poses a great challenge before the RBI, which has been under consistent pressure to cut down the policy rates to accelerate the shrinking growth. The persistent high inflation, however, provides RBI with very little space to take any bold step on rate cut. Practically, the RBI could not go for policy rates cut until the inflation does not come below the comfort level.