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India's consumer price inflation rises to 9.75 percent

Source : IANS
Last Updated: Mon, Nov 12, 2012 09:10 hrs

New Delhi, Nov 12 (IANS) Inflation based on the consumer price index rose marginally to 9.75 percent in October as compared to 9.73 percent in the previous month, on account of a sharp increase in prices of sugar, pulses and vegetables, government data showed Monday.

Sugar became costlier by 19.61 percent year-on-year. Prices of pulses jumped by 14.89 percent and vegetables became costlier by 10.74 percent.

Prices of oil and fats surged by 17.92 percent and cereals became costlier by 11.82 percent.

The price rise was sharper in rural areas. The CPI-based inflation for rural areas increased 9.98 percent in October as compared to 9.79 percent in the previous month.

However, for urban areas consumer price inflation moderated to 9.46 percent in October as compared to 9.72 percent in the previous month.

Vegetables became costlier by 13.71 percent year-on-year in rural areas while in urban areas the increase was 4.16 percent.

Prices of oils and fats increased by 18.69 percent in rural areas while it increased by 16.27 percent in urban areas.

Inflation has remained at an elevated level despite a tight monetary policy adopted by the Reserve Bank of India.

In the second quarter review of monetary policy for 2012-13 announced at the end of last month, the RBI kept key lending and borrowing rates unchanged, saying inflation remained sticky and might rise further in the third quarter of the current financial year.

The RBI has revised upward its projection for wholesale price index based inflation to 7.5 percent from its earlier estimate of 7 percent announced in July.

The wholesale price index based inflation had risen to 10 month high of 7.81 percent in September, according to the latest official figures.




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