Inflation rises to 4.86 percent on higher food prices

New Delhi, July 15 (IANS) India's wholesale price-based inflation rose to 4.86 percent in June as compared to 4.7 percent in the previous month, snapping a four-month easing trend on higher food prices, government data showed Monday.

Despite the marginal rise, the inflation based on Wholesale Price Index (WPI) is still within the Reserve Bank of India's perceived comfort zone of five percent.

It was recorded at 7.58 percent in the corresponding month last year, according to data released by commerce ministry.

The wholesale price-based inflation had declined to 4.7 percent in May, the slowest in more than three years.

Higher food prices have reversed the easing trend in general price level. Food inflation accelerated to 9.74 percent.

Onion price surged by 114 percent year-on-year. Rice became costlier by 19.11 percent, wheat prices jumped by 13.83 percent.

Prices of vegetables jumped by 16.47 percent and cereals became costlier by 17.18 percent year-on-year during the month under review.

The ministry has revised downward inflation data for April to 4.77 percent from 4.89 percent announced earlier.

Inflation for manufactured products stood at 2.75 percent and fuel and power inflation were recorded at 7.12 percent in June.

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