NEW DELHI: The wholesale price index rose 12.14% in the 12 months to September 13, unchanged from the previous week and below a Reuters forecast for an annual rise of 12.23%.
Earlier this week a Reuters poll showed that the inflation rate was expected to hold steady above 12% in the third week of September, with prices of manufactured products expected to have risen.
The wholesale price index was forecast to have risen 12.13% in the 12 months to September 20, having posted rises of 12.14% in each of the two previous weeks.
In early August, the inflation rate was 12.63%, the highest reading since annual numbers in the current data series became available in April 1995.
The government had earlier said inflation would hit 13% and thereafter start moderating from December, before settling at 8.0-9.0% by the end of the fiscal year in March.
Economists said volatile crude oil prices and the chance of a spike in some food costs would force the central bank to keep policy tight.
"We are still seeing very strong price pressures from the primary articles group, and this week we have also seen very high volatility in global crude prices," said Rupa Rege Nitsure, chief economist at Bank of Baroda in Mumbai. "So going ahead, we will continue to see an upward tendency in inflation."
Others analysts said a hefty revision, released last week after a series of more modest amendments, showed price pressures were yet to ease.
Most economists expect inflation to stay in double digits for some months and lower output of some crops could push up food prices in the medium term.
Source : Economic Times
Earlier this week a Reuters poll showed that the inflation rate was expected to hold steady above 12% in the third week of September, with prices of manufactured products expected to have risen.
The wholesale price index was forecast to have risen 12.13% in the 12 months to September 20, having posted rises of 12.14% in each of the two previous weeks.
In early August, the inflation rate was 12.63%, the highest reading since annual numbers in the current data series became available in April 1995.
The government had earlier said inflation would hit 13% and thereafter start moderating from December, before settling at 8.0-9.0% by the end of the fiscal year in March.
Economists said volatile crude oil prices and the chance of a spike in some food costs would force the central bank to keep policy tight.
"We are still seeing very strong price pressures from the primary articles group, and this week we have also seen very high volatility in global crude prices," said Rupa Rege Nitsure, chief economist at Bank of Baroda in Mumbai. "So going ahead, we will continue to see an upward tendency in inflation."
Others analysts said a hefty revision, released last week after a series of more modest amendments, showed price pressures were yet to ease.
Most economists expect inflation to stay in double digits for some months and lower output of some crops could push up food prices in the medium term.
Source : Economic Times