Inflation for week inches Up - due to trucker's strike

Breaking the 10-week down ward streak, whole sale price inflation for the week ended January 10 inched up to 5.6% on the back of firmer food prices. The inflation for food items has touched a 10-year high of 11.64% as the trucker's strike, which went on from January 5 to 12, made food items costlier. Wholesale price inflation was at 5.24% in the week before and was at 4.36 % in corresponding week last year.

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Economists dismissed the spike in inflation as a blip in the easing trajectory of inflation. More than 5 million Indian truckers have gone on strike from January 5 to 12 creating a shortage for food items and making it costlier over the week. Vegetables became costlier by almost 19% over the week while the prices of fruits and cereals also moved up. Inflation for food items moved up by one and a half percentage points from the previous week’s levels.

The 10-year benchmark bond yields closed at 5.84 %, after inflation came slightly above market expectations. The yields have touched a high of 6% in the morning trade. The 10-year bond yields is a percentage point above record low of 4.86% of January 5, following rate cuts by the central bank.The yields of ten year papers closed at 5.89% on Wednesday.

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