Headline inflation, though only marginally up in October, continued to stay above the 9 per cent mark for the eleventh straight month. The annual wholesale price index-based inflation rate in October rose 9.73 per cent compared to the previous month’s annual increase of 9.72 per cent.
Food inflation was up sharply to around 11 per cent in October from just over 9 per cent in the previous month on account of items such as vegetables, pulses and poultry products surging on a year-on-year basis during the latest reported month.
Fuels too exhibited an increase even as manufactured products bucked the trend and recorded a slight dip.
Fuel inflation in October stood at 14.79 per cent while food inflation was 11.06 per cent and manufactured products inflation at 7.66 per cent.
The RBI has raised interest rates 13 times since early 2010 to curb price pressures that are threatening to hit double-digit levels due to supply and transport bottlenecks and high global commodity prices.
The central bank acknowledged in its October review that growth risks were being reflected in slowing economic indicators for Asia’s third-largest economy, but still raised its key lending rate by 25 basis points.
It also said that if inflationary pressures started to abate by December, which is expected in light of the base effect coming into play, more rate hikes may not be needed.