Fast growing inflation touched an all time high of 7 per cent — in the week ending March 22 — in the last three years, sending prices of food, vegetables, minerals and manufactured items soaring high.
The Wholesale prices Index released by Commerce Ministry showed that inflation rose to 7 per cent, faster than previous week on March 15 at 6.68 percent.
Leading the leap in inflation were minerals whose index rose by whopping 38 per cent. Other commodities that contributed significantly were vegetables (4.9), pulses (1.4) edible oils (1.6), food articles (0.1) and primary articles (1.8).
The index for fuel and power registered a 0.1 rise while manufactured products moved up by 0.2 per cent. However, cement remained unchanged. Inflation is at its highest since November 2004, when it rose to 7.07 per cent.
Significantly, inflation has been creeping up since January this year when it was at 3.83 per cent and rose to 4.33 per cent for the week ending February 23. Three weeks later, inflation touched 6.68 for the week ending March 15.
It was mostly quiet for the market, until inflation came out at a 3-year high of 7% at noon. The market started sliding after that. But positive opening for the European markets curbed the fall to an extent. Sensex closed at 15,343, down 489 points from the previous close. Nifty shut shop at 4647, down 124 points. The hit wasn't as bad for the midcaps and smallcaps; CNX Midcap index lost 2% and BSE Smallcap index, 1.6%. selling was witnessed across all sectors, but capital goods, power and banking stocks were dumped the most.
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