India’s headline inflation sharply increased to a seven-month high of 6.46 percent in September largely driven by higher food prices, government data illustrated on Monday.
India’s headline inflation sharply increased to a seven-month high of 6.46 percent in September largely driven by higher food prices, government data illustrated on Monday.
The inflation, calculated on the wholesale price index (WPI), was at 6.1 percent in August.
Food prices climbed 18.40 percent annually last month, more rapidly than an annual rise of 18.18 percent in August.
The reading of July was corrected to 5.85 percent from 5.79 percent, data released by the Ministry of Commerce and Industry illustrated.
Increased prices of onion along with other vegetables and fruits shot up inflation for the fourth month, making it hard for Reserve Bank of India to cut rate in the monetary policy review to be held at the end of this month.
The sharpest rise was observed in case of onion prices which jumped by 323 percent annually in September.
Reportedly, the price of vegetables in general rose by 89.37 percent making life difficult for the common man. Fruits too were costlier by 13.54 percent year-on-year during the month. Inflation in the LPG (liquefied petroleum gas) and petrol was 9 percent and 9.64 percent, correspondingly, on yearly basis.
Though, there was downfall in prices of egg, meat, fish and manufactured food items like beverages and tobacco products.
On the whole, inflation in manufactured items showed a reasonable rise of 2.03 percent during the month on annual basis.
RBI is scheduled to reveal its second quarter review of monetary policy on October 29 and will have to take into consideration the mounting inflation while accounting steps to enhance economic activities.
