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During February, sugar prices rose by 55.5% year-on-year while potatoes turned costlier by 30% and pulses by 35.58%. Among fuel items, petrol prices rose by 11.7% and high-speed diesel by around 9%
Wholesale price-based inflation rose to 9.89% in February from 8.56% in the previous month due to increase in prices of certain food items such as sugar and the hike in excise duty on fuel announced last month, reports PTI.
Sugar prices rose by 55.5% in February year-on-year while potatoes turned costlier by 30% and pulses by 35.58%. Among fuel items, petrol prices rose by 11.7% and high-speed diesel by around 9%.
Overall, the fuel index for the month rose by 1.5%. Non-coking coal rose 12%, coking coal 9% and high-speed diesel and petrol by 2% each.
Inflation is expected to rise further following the hike in excise duty on petrol and diesel in the Budget.
To tame inflation, the Reserve Bank of India (RBI), in its quarterly monetary review, had asked banks to keep aside more cash with them. It hiked the cash reserve ratio—the amount banks have to park with the apex bank—by 75 basis points to 5.75%, which would suck out Rs36,000 crore from the system.
The RBI's projection of inflation touching 8.5% by this fiscal-end has already been breached last month.