New Delhi, Oct 14
India’s annual inflation based on wholesale prices continued to hover close to double digits — at 9.72 percent — for September, official data showed Thursday, strengthening the likelihood of another rate hike by the Reserve Bank.
The annual inflation was registered at 9.78 percent in August. The provisional figures for July too were revised upwards to 9.36 percent, compared to 9.22 percent previously reported, according to data released by the commerce and industry ministry.
The primary articles index rose to 11.84 percent in September, while that for fuel and power rose 14.09 percent.
The index of manufactured products, which has the highest weightage on the wholesale price index, rose 7.69 percent. The Food articles index registered an increase of 9.23 percent.
Although the Reserve Bank of India has indicated many times in the past that it would continue to adopt a hawkish stance until inflation eases, poor industrial output numbers for July and August will make the central bank hesitant in hiking rates by a significant quantum.
In its last review, the RBI had raised the rep rate by 25 basis points. The RBI has hiked its policy rates 12 times since January 2010 in its war against inflation.