Purchasing power

Fibres are fuelling the wholesale price inflation, currently at almost six times the WPI growth rate. Milk prices have again witnessed a small spike. But thankfully, other food articles have shown a marginal decline, helping contain the overall inflation at 3.83%.

Namrata Dadwal        Print Edition: February 21, 2008

Fibres are fuelling the wholesale price inflation, currently at almost six times the WPI growth rate. Milk prices have again witnessed a small spike. But thankfully, other food articles have shown a marginal decline, helping contain the overall inflation at 3.83%.

Wholesale price inflation: 3.83%

Highest inflation rates

Fibres 22.3%
Oil seeds 10.8%
Milk 9.5%
Beverages & tobacco 9.3%
Non-food articles 8.8%

Lowest inflation rates

Textiles -3.7%
Fruits & vegetables -3.5%
Other minerals -1.5%
Condiments & spices -0.8%
Electricity -0.7%

Figures are percentage annual rise in wholesale price index for the week ending 12 January 2008.

Rates of relevance

5 Fixed deposit rates

BanksMaturityInterest rates
Tamil Mercantile Bank400 days9.75%
Axis Bank1 year to less than 2 years9.00%
IDBI Bank500 days9.00%
ICICI Bank590 days8.75%
Kotak Bank1 year to less than 2 years8.75%
Source: Bank websites

Bank FD rates are still above 9%. However, this may not be the case for too long. If you are looking for low-risk guaranteed returns, get locked now

You get tax benefit on interest earned on a fixed deposit only if the FD is for five years. Evaluate your actual yield before locking into an FD

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