Inflation rises 1.21% on firming food prices

Inflation rose to 1.21 per cent for the week ended October 10 as prices of major food items firmed up further.

The wholesale price-based inflation stood at 0.92 per cent in the previous week.

Inflation rose to above one percentage mark after remaining below one per cent for five consecutive weeks and before that below-zero levels for 13 weeks in a row.

Prices of sea fish rose by 14 per cent, moong by 5 per cent, rice by 3 per cent, and urad, arhar, wheat by one per cent each. However, prices of fruits and vegetables declined by one per cent each.

Experts, including Prime Minister's economic advisory panel, expect inflation to reach 6 per cent mark by this fiscal end.

Firming up inflation could have bearing on monetary review to be announced by the Reserve Bank on October 27. Experts, however, believe that RBI will maintain a status-quo on interest rates.