Costly food pushes inflation to 1.34 pc in October

The first monthly data released by the Government today showed inflation more than doubled to 1.34 per cent in October compared to 0.5 per cent a month earlier as essential food items turned costlier.

Interestingly, the build-up inflation in the financial year so far was 6.13 per cent compared to 5.99 per cent in the corresponding period of the previous year.

In variance with the earlier practice of a weekly release, this is the first time the government has come out with comprehensive inflation data on a monthly basis with 1993-94 as the base year.

Analysts say RBI may tighten its monetary stance in the January policy review if the inflationary pressure continues to build up.

“If the inflationary pressure develops, then authorities (RBI) may take action even earlier. RBI will have to wait and see how price situation evolves during the period of November-December,” Prime Minister’s Economic Advisory Council Chairman C Rangarajan had said.

On an annual basis, prices of potato have doubled since October last year, while onions were expensive by 37 per cent.

At the same time other items like vegetable were costlier by 23 per cent, sugar 45 per cent and wheat by 13.22 per cent.