Inflation rises to 7.55 percent in August

September 14th, 2012 - 3:45 pm ICT by IANS  

New Delhi, Sep 14 (IANS) India’s inflation soared to 7.55 percent in August compared to 6.87 percent in July, largely driven by a sharp hike in prices of food items, government data showed Friday.

Inflation, based on wholesale price index (WPI), was 9.78 percent in August 2011.

A sharp increase in food items like pulses, wheat, potato and some other vegetables led to a more than expected rise in inflation in August.

Worsening inflationary pressure may force the Reserve Bank of India (RBI) to leave key rates unchanged when it reviews the monetary policy Monday.

In August, potato became costlier by 68.86 percent year-on-year while prices of pulses surged by 34.39 percent. Wheat became costlier by 12.85 percent and prices of rice increased by 10.29 percent.

Overall food inflation was recorded at 9.14 percent in August. Inflation of primary articles was 10.08 percent.

Related Stories

Tags: , , , , , , , , , , , , ,

Posted in Business |