and diesel, along with skyrocketing tomato prices, pushed the Wholesale Price Index
up to a four-month high of 3.24 per cent in August, from 1.88 per cent in the previous month.
This, along with rising Consumer Price Index
(CPI)-based inflation, may prompt the Reserve Bank of India
to not cut rates in its policy review next month. CPI-based inflation
was at a five-month high of 3.36 per cent in August, compared to 2.36 per cent in July.
jumped to 24.55 per cent in August, from 9.6 per cent in the previous month, showed the official data. Similarly, diesel
moved up to 20.30 per cent from 5.49 per cent in this period.
Aditi Nayar, principal economist with ICRA, said the continued rise in crude oil
prices is expected to push up the mineral oils sub-index in the ongoing month. “However, the subsequent upside risk posed by crude oil
and other fuels
is likely to be limited,” she said.
She said the Brent crude may not sustain beyond $55 a barrel. Also, daily adjustment in domestic retail prices
would not allow any shock.
in fuel and power doubled to 9.99 per cent from 4.37 per cent. Food inflation
more than doubled to 5.75 per cent from 2.15 per cent. Inflation
in tomatoes rose to 259.7 per cent 209.56 per cent.
in tomatoes is expected to come down as prices have fallen drastically in September. Onions saw inflation
of 88.46 per cent from deflation in the previous few months.