Inflation remained in the negative territory, rising slightly to (-)1.14 per cent in the week ending June 13 from (-)1.61 per cent in the previous week. The inflation rate was close to 12 per cent around the same time last year. However, with the apparent delay in monsoons, it may become difficult for the government to contain the wholesale price index (WPI) in the near future.

The WPI has already started climbing, and this week alone it rose 0.6 per cent to 234.2 from 232.7 in the previous week. If the delay in monsoons pushes up prices rapidly, inflation might turn positive earlier than expected. CPI inflation for rural and agricultural labour accelerated to 10.2 per cent in May from 9.1 per cent in April. “From August 2008 to May 2009, inflation in these indices was consistently in double digits, except in March and April 2009,” a finance ministry statement said. Food inflation, too, is riding high at 9.2 per cent.