Inflation in diesel shot up to 8.9% during the month, from 0.36%, following a price rise of over Rs5 per litre on 13th September, while wheat and cereals turned expensive by 18.6% and 14.2%, respectively
New Delhi: Inflation in India rose to its highest level this fiscal at 7.81% in September as prices of wheat, cereals and diesel soared, a development that may restrain Reserve Bank of India (RBI) from cutting interest rates at its monetary policy later this month, reports PTI.
Inflation, as measured by the Wholesale Price Index (WPI), was 7.55% in August. In September last year, however, it was 10%.
In the food articles category, wheat turned expensive by 18.6%, up from 12.9% in August. Cereals too became dearer by 14.2%, from 10.7% in the previous month.
Inflation in diesel shot up to 8.9% during the month, from 0.36%, following government raising prices of the petro-product by over Rs5 per litre on 13th September.
For the fuel and power category, inflation surged 11.88% from 8.32%. Besides diesel, aviation turbine fuel and kerosene became expensive.
Food inflation, as a category, declined to 7.86% during the month, from 9.14% in the previous month.
Food articles have 14.3% share in the WPI basket. Year-on-year basis, however, potatoes were costlier by 52.20% and rice by 12.41%.
In the manufactured items category, prices rose for cotton textiles, paper and paper products, rubber and plastic products.
The rate of price rise in the manufactured products was 6.26% in September, as against 6.14% in August.
The Reserve Bank is scheduled to unveil its policy on October 30. Industry has been demanding a rate cut in view of fiscal measures taken by the government, but the high level of inflation may dissuade RBI from easing the policy
Inflation in eggs, meat and fish prices was 12.44%, while in milk and fruits it was 6.25% and 6.96% respectively.
However, vegetables prices have eased to (-)6.78% in September on year-on-year basis. Inflation in this segment was 9.98% in August.
However, the pressure on prices of onions declined during the month to (-) 24.88%.
In non-food articles, inflation in oil seeds was 28.13%, fibres (-) 5.67% and minerals 12.38%.
Inflation for July was revised upwards to 7.52%, from 6.87% as per provisional estimates.
Before the September inflation number, as per the data released on Monday, June had the highest rate of price rise in this fiscal at 7.58%.