India’s food price index rose 10.60 per cent and the fuel price index climbed 15.17 per cent in the year to Oct. 8, government data on Thursday showed.
In the previous week, annual food and fuel inflation stood at 9.32 per cent and 15.10 per cent, respectively.
The primary articles index was up 11.18 per cent, compared with an annual rise of 10.60 per cent a week earlier.
The RBI has raised interest rates a dozen times since March 2010, a campaign that has done more to slow growth than contain inflation, which remains at more than twice the bank’s comfort level.
Growth in Asia’s third-largest economy will be slower than government projections, Finance Minister Pranab Mukherjee said on Wednesday, highlighting how high inflation, rising interest rates and global financial turbulence threaten India’s growth momentum.
But Mukherjee hinted India may continue to tighten monetary policy, in contrast to most other major emerging economies, to keep stubbornly high inflation in check despite fears of a broader economic slowdown.
A jump in fuel and power prices drove the wholesale price index up 9.72 per cent in September versus a year earlier, government data showed last Friday, bracing the market for another possible interest rate rise.