New Delhi: Inflation rose to its highest level this fiscal at 7.81 percent in September as prices of wheat, cereals and diesel soared, a development that may restrain RBI from cutting interest rates at its monetary policy later this month.
Inflation, as measured by the Wholesale Price Index (WPI), was 7.55 percent in August.
In September last year, however, it was 10 percent.
In the food articles category, wheat turned expensive by 18.63 percent, up from 12.85 percent in August. Cereals too became dearer by 14.18 percent, from 10.7 percent in the previous month.
Inflation in diesel shot up to 8.94 percent during the month, from 0.36 percent, following government raising prices of the petro-product by over Rs 5 per litre on September 13.
For the fuel and power category, inflation surged 11.88 percent from 8.32 percent. Besides diesel, aviation turbine fuel and kerosene became expensive.
Food inflation, as a category, declined to 7.86 percent during the month, from 9.14 percent in the previous month. Food articles have 14.3 percent share in the WPI basket.
Year-on-year basis, however, potatoes were costlier by 52.20 percent and rice by 12.41 percent.
In the manufactured items category, prices rose for cotton textiles, paper and paper products, rubber and plastic products.
The rate of price rise in the manufactured products was 6.26 percent in September, as against 6.14 percent in August.
The Reserve Bank is scheduled to unveil its policy on October 30. Industry has been demanding a rate cut in view of fiscal measures taken by the government, but the high level of inflation may dissuade RBI from easing the policy.
Inflation in eggs, meat and fish prices was 12.44 percent, while in milk and fruits it was 6.25 percent and 6.96 percent respectively.
However, vegetables prices have eased to (-) 6.78 percent in September on year-on-year basis. Inflation in this segment was 9.98 percent in August.
However, the pressure on prices of onions declined during the month to (-) 24.88 percent.
In non-food articles, inflation in oil seeds was 28.13 percent, fibres (-) 5.67 percent and minerals 12.38 percent.
Inflation for July was revised upwards to 7.52 percent, from 6.87 percent as per provisional estimates.
Before the September inflation number, as per the data released today, June had the highest rate of price rise in this fiscal at 7.58 percent.
First Published: Monday, October 15, 2012, 12:11