The Hindu Business Line : Inflation much higher if seen from beginning of this fiscal

NEW DELHI: Inflation stands at 0.37 per cent for the second week of September year-on-year, but the price rise compared to start of the fiscal is 6.12 per cent.

However, inflation at 6.12 per cent for the second week of September is slightly less than 6.62 per cent in the corresponding period of last fiscal, when the same methodology is applied. According to official data, it was mainly primary articles, includi ng food found in raw form which is driving this inflation.

Primary inflation has touched double digits at 10.56 per cent. Inflation relating to fuel, power, light and lubricant category, inflation was 7.01 per cent and manufactured product inflation at 3.93 per cent.

However, RBI is not expected to reverse its monetary stance and signal hike in interest rates even as inflationary pressures are building. With Prime Minister Mr Manmohan Singh calling G-20 nations not to “prematurely” exit from stimulus, there is little that RBI can do to exit from its monetary stimulus, analysts added.

“I don't expect RBI to go with monetary tightening measures in the October policy. The RBI might take increase policy rates in its March policy,” HDFC Bank chief economist Abheek Barua said. - PTI

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