Wholesale price index (WPI)-based inflation was at a six-month high of 3.59 per cent in October, from 2.6 per cent the previous month. As consumer price index (CPI) inflation rose similarly (to 3.58 per cent, a seven-month high) in the month, this is likely to be a factor if the Reserve Bank of India decides not to cut its policy rate at next month's review to spur economic growth. Food inflation, led by onions and tomatoes and in fuels, pushed the WPI inflation; that in manufactured products showed a decline. This led to core inflation (manufactured items sans food products) remaining stable at 2.8 per cent. Inflation was higher than October's only in April (3.85 per cent) in the financial year so far. Food inflation more than doubled to 4.3 per cent in October. For vegetables, at 36.61 per cent last month as against 15.48 per cent in September.In the case of onions, inflation surged to 127.04 per cent, while tomatoes saw it jumping to 97 per cent. However, pulses continued to see .
Read Full Article On www.business-standard.com