Inflation hits two-year high in India

Inflation has reached a two-year high of 6.12 percent in India in the first week of 2006, according to the government data released Friday.

Indo-Asian News Service quoted the government data as saying that the country reported the year-on-year inflation of 6.12 percent, measured by the official wholesale price index, in the week which ended Jan. 6, 2006, up from 5.58 percent for the previous week.

This was the highest level since 6.56 percent on Dec. 25, 2004. Increase in prices of food articles and fuels mainly contributed to the index rise.

It is also for the first time that the inflation rate has crossed the six percent mark during this fiscal year which ended on March 31.

The Reserve Bank of India (RBI), India's central bank, had earlier estimated the inflation to reach 5.5 percent for this fiscal year.

Source: Xinhua