New Delhi: Wholesale prices rose the most since May as the weakest monsoon rain in almost four decades caused shortages and pushed up costs of vegetables, lentils and other food products.
The benchmark Wholesale Price Index, or WPI, climbed 0.92% in the week to 3 October from a year earlier, after gaining 0.7% in the previous week, the commerce ministry said on Thursday. Economists had expected a 1.46% increase.
Reserve Bank of India (RBI) governor D. Subbarao, who says India may need to act before developed economies to curb incipient inflationary pressures, next reviews the central bank’s monetary policy on 27 October.
“Food inflation is bound to push inflation above the Reserve Bank’s comfort zone,” said Samiran Chakraborty, an economist at Standard Chartered Bank in Mumbai.