Food inflation down at 9.32 pc for week ended 1 Oct

New Delhi: Food price index rose 9.32 percent and the fuel price index climbed 15.10 percent in the year to 1 October, government data on Thursday showed.

In the previous week, annual food and fuel inflation stood at 9.41 percent and 14.69 percent, respectively.

The primary articles index was up 10.60 percent, compared with an annual rise of 10.84 percent a week earlier.

The RBI has raised interest rates a dozen times in the past 18 months, in a campaign that has done more to slow growth than contain inflation, which remains at more than twice the bank’s comfort level.

Data on Wednesday showed industrial production expanded less than expected in August in further evidence of a slowdown in the economy as soaring interest rates and persistently high inflation weigh on demand.

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Whether the persistent weakness in industrial output growth will spur the Reserve Bank of India (RBI) into ending a long cycle of rate rises may be determined by Friday’s September headline inflation data.

Inflation in August accelerated to 9.78 percent, its highest in more than a year, from 9.22 percent in July.

The RBI will meet on 25 Oct to review its policy.

Reuters