Inflation soars to 8-month high of 7%

New Delhi, Nov 14: Headline inflation based on wholesale prices jumped to 7 per cent in October, the highest level in eight months, due to higher prices of fuel, food and manufactured goods, government data showed on Thursday.

The country's main inflation measure based on the Wholesale Price Index (WPI) was at 6.46 per cent in the previous month and 7.32 per cent in the corresponding month of last year, according to data released by the ministry of commerce and industry here.

Food prices jumped by 18.19 per cent year-on-year during the month under review. It had increased by 18.4 per cent in September.

The headline for August is revised sharply upward at 6.99 per cent from 6.1 per cent reported earlier.

Fuel and power inflation accelerated to 10.33 per cent in October as compared to 10.08 per cent in the previous month.

Fuel and power inflation accelerated to 10.33 per cent in October

Manufactured products inflation rose to 2.5 per cent in the month under review from 2.03 per cent reported in the previous month.

Reacting on the monthly data, Assocham president Rana Kapoor said the rise in inflation is a "disturbing sign".

He said acceleration in build-up inflation indicates that there is pain ahead for the economy.

Build-up inflation rate in the financial year so far was 6 per cent as compared to a build-up rate of 4.66 per cent in the corresponding period of the previous year.

"The inflationary pressure is being exerted from the primary articles and food prices, which are in a way inexplicable given the fact that we had a good monsoon this year. By now, the impact should have been visible," said Kapoor, who is also managing director of Yes Bank.

Prices of vegetables jumped by 78.38 per cent in October year-on-year. Onion prices soared by 278.21 per cent. Fruits became costlier by 15.94 per cent. Prices of egg, meat and fish soared by 17.47 per cent year-on-year during the month under review.

Retail inflation based on the Consumer Price Index (CPI) rose to 10.09 per cent in October as compared to 9.84 per cent recorded in the previous month, according to data released by the Central Statistics Office (CSO) on Tuesday.

In retail markets prices of vegetables have soared by 45.67 per cent.

IANS