NEW DELHI- India’s wholesale price index based inflation rose 1.84 percent in September on the back of higher food prices.
The September print was lower than the 1.92 percent increase projected by economists in a Reuters poll and up from 1.31 percent in August, according to government data released on Monday.
Food prices rose 9.5 percent year-on-year in September, compared to a 3.26 percent rise in August. Vegetable prices rose 48.7 percent, compared to a drop of 10 percent in August. Cereal prices rose 8.1 percent over last year from an 8.4 percent increase a month ago.
Prices of manufactured products rose 1 percent against a 1.2 percent rise in the previous month.
Fuel and power prices dropped 4 percent from a 0.7 percent drop in August.
Last week, the Reserve Bank of India (RBI) left key interest rates unchanged but tweaked its stance to “neutral”, opening the door for rate cuts amid early signs of a growth slowdown in the economy.
However, a widening conflict in the Middle East has pushed global oil prices hovering near $80 a barrel and that could fan inflation in India, which is the third-largest oil importer and consumer.
