PHOTO: Associated Press
Higher prices of onion along with other vegetables and fruits pushed up inflation for the fourth month in a row to 6.46 per cent in September, making it difficult for the central bank to cut rate in the monetary policy review due later this month.
Inflation, based on wholesale price index (WPI), was at 6.1 per cent in August and 5.85 per cent in July.
According to data released by the government on Monday, food inflation stood at 18.40 per cent in September over the same month last year. The food prices had shot up 18.18 per cent in August.
The sharpest increase was witnessed in case of onion prices which jumped by 323 per cent year-on-year in September.
The price of vegetables in general rose by 89.37 per cent making life difficult for the common man. Fruits, too, were costlier by 13.54 per cent year-on-year during the month.
Inflation in LPG (liquefied petroleum gas) and petrol was at 9 per cent and 9.64 per cent, respectively, on annual basis.
However, there was decline in prices of egg, meat, fish and manufactured food items like beverages and tobacco products.
Overall, inflation in manufactured items showed a moderate increase of 2.03 per cent during the month on annual basis.
The Reserve Bank of India is scheduled to unveil its second quarter review of monetary policy on October 29 and will have to take into account the rising inflation while announcing steps to boost economic activities.