Food inflation climbed back to double digits at 10.6 per cent, just ahead of the Reserve Bank of India's monetary policy review.
Latest inflation data, the last set of official estimates to be released before the central bank's October 25 policy review, showed food inflation trending sharply higher into the double digits after a gap of a month-and-a-half.
The upswing in the food inflation estimates, despite being a result of a statistical base effect, could have a bearing on whether the central bank chooses to continue with its monetary-tightening measures or gives in to the increasing clamour for a pause.
While the jury is still out on the course of action that the RBI will take, the latest reading reinforces analysts' expectations that inflationary pressures are unlikely to decline in the immediate future, increasing pressure on the central bank to continue its rate-raise cycle that began in March 2010.
Vegetables, poultry up
According to data released by the Government on Thursday, the annual wholesale price index-based food inflation rose by 10.6 per cent during the week ended October 8, well above than the previous week's annual rise of 9.32 per cent.
Apart from the previous year's low base, a perceptible spike in items such as vegetables and poultry products contributed to the surge.
Sequentially, food inflation was up 0.4 per cent.
The combined primary articles index, which has a weight of over 20 per cent in the WPI, rose 11.18 per cent during the latest reported period, sharply higher than the annual rise of 10.60 per cent a week earlier.
Fuel inflation, too, rose slightly, even as inflation in non-food items eased sharply.
Non-food-articles inflation eased to 8.51 per cent from 9.59 per cent a week earlier, with fibres, oilseeds and minerals declining.
Fuel inflation rose marginally by 15.17 per cent during the latest reported week from 15.1 per cent a week earlier.
Headline inflation in September was recorded at 9.72 per cent, well above the RBI's comfort level. The RBI has hiked interest rates by 350 basis points since March last year to tame inflation.