Press Esc to close
Monday 26 June 2017
News updated at 3:38 AM IST

Inflation cools off to 7.45% in Oct

New Delhi, Nov 14, 2012,DHNS 22:00 IST

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
Prime Minister Narendra Modi being welcomed, on his arrival at Joint Base Andrews, Washington...

Prime Minister Narendra Modi being welcomed, on his arrival at Joint Base Andrews, Washington...

Senior CRPF and police officers carrying the coffin of SI/GD Sahab Shukla after wreath laying...

Senior CRPF and police officers carrying the coffin of SI/GD Sahab Shukla after wreath laying...

Senior BJP MLA Ghanshyam Tiwari stages 'satyagraha' against Rajasthan Chief Minister Vasundhara...

Senior BJP MLA Ghanshyam Tiwari stages 'satyagraha' against Rajasthan Chief Minister Vasundhara...

Hindu devotees pull the 'Rath' or the chariot of Lord Jagannath, during the annual Rath Yatra, or...

Hindu devotees pull the 'Rath' or the chariot of Lord Jagannath, during the annual Rath Yatra, or...

Acclaimed Odissi dancer Dona Ganguly's troupe performs during 46th ISKCON Rath Yatra of Lord...

Acclaimed Odissi dancer Dona Ganguly's troupe performs during 46th ISKCON Rath Yatra of Lord...

Switzerland's Roger Federer celebrates his victory in the final match against Germany's Alexander...

Switzerland's Roger Federer celebrates his victory in the final match against Germany's Alexander...

French Air Force Patrouille de France air demonstration teams take part in flying display during...

French Air Force Patrouille de France air demonstration teams take part in flying display during...

Penitents and costaleros of the Nuestro Padre Jesus Nazareno brotherhood carry a float bearing...

Penitents and costaleros of the Nuestro Padre Jesus Nazareno brotherhood carry a float bearing...

Over 10,000 Chinese yoga enthusiasts in Wuxi, a city near Shanghai in eastern China, took part in...

Over 10,000 Chinese yoga enthusiasts in Wuxi, a city near Shanghai in eastern China, took part in...

A student band dressed as Star Wars storm troopers hold their instruments during the walk...

A student band dressed as Star Wars storm troopers hold their instruments during the walk...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.