Press Esc to close
Wednesday 18 January 2017
News updated at 1:05 PM IST
Weather
Max: 28.9°C
Min : 15.4°C
In Bengaluru
Sunny day

Inflation cools off to 7.45% in Oct

New Delhi, Nov 14, 2012,DHNS

May prompt RBI to resort to rate cut

 Labourers thresh paddy crop in a farm at Sanand in Gujarat October 30, 2012. REUTERS
India’s wholesale inflation slowed marginally to 7.45 per cent in October, taking some pressure away from the Reserve Bank of India, but expensive food required augmentation of supply-side measures from the government.

The Wholesale Price Index (WPI) at 7.45 per cent was down from 7.81 per cent in September, government data showed on Wednesday. The lower inflation print may prompt the RBI, already being pressured from the government and industry groups, to resort to a rate cut in its monetary policy review early next year.

But, experts were still apprehensive about any cooling-off of inflation in coming months as the recent rise in diesel prices is only expected to fan fuel prices having a secondary effect on core inflation and maintaining the upward pressure on WPI index in this financial year.
Although the overall food inflation declined to 6.62 per cent in October from 7.86 per cent last month, prices of wheat went up close to 20 per cent from less than 19 per cent last month. Pulses and rice too showed an upward movement in prices along with potatoes. But, seasonal vegetables, especially onion prices cooled-off on expectation of good crop arrival in the market this season. The fuel and power inflation was lesser at 11.71 per cent from close to 12 per cent previous month.

The inflation print could not evoke any reaction from the stock or bond prices as the share market remained closed on account of a public holiday. But, Ficci expected RBI to revisit its monetary policy regime on account of moderation in inflation number.

“The inflation numbers are showing signs of moderation,” said Ficci President R V Kanoria.
“This should encourage RBI to fine-tune monetary policy with a view to bolstering growth, particularly in the manufacturing sector.”

The WPI has averaged 7.60 per cent since December 2011, despite RBI’s tight monetary stance. Sustained rise in prices of agricultural commodities and rising rural consumption has added to inflation.

 

Go to Top

Photo Gallery
An G+3 Illegal building demolished by CIDCO at Nerul in Navi Mumbai...

An G+3 Illegal building demolished by CIDCO at Nerul in Navi Mumbai...

Sand artist Sudarsan Pattnaik creates a sand sculpture at Puri beach of Odisha on Tuesday...

Sand artist Sudarsan Pattnaik creates a sand sculpture at Puri beach of Odisha on Tuesday...

Train moves on snow covered Srinagar-Qazigund railyway track during heavy snowfall,at Anantnag...

Train moves on snow covered Srinagar-Qazigund railyway track during heavy snowfall,at Anantnag...

Columnist Shobhaa De, actor Shah Rukh Khan and Bollywood filmmaker Karan Johar...

Columnist Shobhaa De, actor Shah Rukh Khan and Bollywood filmmaker Karan Johar...

A Samajwadi (SP) party worker holds a toy bicycle representing the party's symbol...

A Samajwadi (SP) party worker holds a toy bicycle representing the party's symbol...

Tribal villagers take part in a community fishing as part of celebrations...

Tribal villagers take part in a community fishing as part of celebrations...

A man rides his scooty during fresh snowfall in Srinagar on Tuesday...

A man rides his scooty during fresh snowfall in Srinagar on Tuesday...

Tourists enjoy in snow after snowfall in Shimla...

Tourists enjoy in snow after snowfall in Shimla...

Union Minister of Railways Suresh Prabhu and CM Siddaramaiah are flagging off of MEMU services...

Union Minister of Railways Suresh Prabhu and CM Siddaramaiah are flagging off of MEMU services...

London Olympics bronze medallist grappler Yogeshwar Dutt during his wedding procession at his ...

London Olympics bronze medallist grappler Yogeshwar Dutt during his wedding procession at his ...

Like us on Facebook

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523