PRICES-Return of Inflation

Return of Inflation WITH the rate of increase in the Wholesale Price Index gaining velocity since March 1986, the false complacency engendered by the relatively low inflation rate of 1985-86 should give way to a sense of concern over the price situation. As has been repeatedly stressed in these columns, the subdued trend in the general price level witnessed in 1985-86 was deceptive in that it failed to capture the higher rate of inflation experienced by the essential commodities. The rate of increase of price of food articles and food products was persistently higher than that of the all- commodities index.