New Delhi : Inflation, based on wholesale rates, shot up to a 6-month high of 3.59 per cent in October as prices of food items and fuel rose sharply. As per the Wholesale Price Index (WPI), inflation was 2.60 per cent in September. In October last year, it was 1.27 per cent. The inflation figure for October this year is the highest since April, when it was at 3.85 per cent.
The government data released on Tuesday showed that inflation in food articles more than doubled to 4.30 per cent in October. In case of onions, it skyrocketed to 127.04 per cent, while for vegetables it was 36.61 per cent. In the eggs, meat and fish segment, the rate of price rise was 5.76 per cent. ICRA Principal Economist Aditi Nayar said the spike in WPI inflation was broad-based, led by vegetables, fruit, crude oil, natural gas, fuels, minerals and electricity.
“The sharper-than-anticipated uptick in the WPI inflation reinforces our expectation of a status quo in the upcoming monetary policy review,” Nayar said.
Reserve Bank of India is scheduled to come out with its next monetary policy review on December 6. Inflation in manufactured products saw a slight dip to 2.62 per cent, as against 2.72 per cent in September. In the fuel and power segment, it rose to 10.52 per cent, as against 9.01 per cent in September.