Inflation creeps to 1.51%
Vindicating the Reserve Bank of India’s hardening monetary policy stance aimed at containing the price spiral, the rate of inflation moved up by 30 basis points to 1.51 per cent for the week ended October 17 from 1.21 per cent in the previous week, giving a clear signal of inflationary pressures building up in the economy.
Even as prices of certain food articles were on the decline, the upward movement in WPI inflation — despite the high base of 10.82 per cent in the like week a year ago — reflected the pressure on prices. With the rising trend setting in, the RBI’s projection of a 6.5-per cent headline inflation by the end of the fiscal is now appearing realistic to analysts.
Even as prices of certain food articles were on the decline, the upward movement in WPI inflation — despite the high base of 10.82 per cent in the like week a year ago — reflected the pressure on prices. With the rising trend setting in, the RBI’s projection of a 6.5-per cent headline inflation by the end of the fiscal is now appearing realistic to analysts.
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